Ch5 Full Test Bank Crm, Big Data, And Marketing Analytics

Marketing Management, 3e (Marshall)

Chapter 5 CRM, Big Data, and Marketing Analytics

1) Positioning customer relationship management (CRM) as a comprehensive business model provides the impetus for top management to properly support it over the long run.

2) It is possible today to calculate the total financial returns for each customer.

3) Customer satisfaction and customer loyalty, two metrics used by brand managers, are metrics used in customer relationship management.

4) One major objective of CRM is customer replacement.

5) Marketing planning is the first phase of the customer relationship management (CRM) process cycle.

6) Data mining helps in segmenting customers in order to target key markets.

7) When a salesperson calls on a prospect and meets face to face, it is an example of an interactive touchpoint.

8) When a customer willingly gives a company sensitive information, such as a social security number, the company is not responsible for the security of this information.

9) Increasing formalization of customer analysis processes is a component of a customer-centric culture.

10) The four Vs of Big Data are volume, velocity, variety, and visibility.

11) Data in a spreadsheet is considered unstructured data.

12) A POS system is in use when you go to a grocery store and your transaction is collected at the cash register so companies can analyze your purchase behavior.

13) Cross-promotional opportunities are a benefit of collecting data from mobile apps.

14) Marketing analytics is a new concept brought about by the increased use of mobile phones.

15) When the online shore store Zappos collects information on the average dollar amount a customer spends in a single transaction, it is using descriptive analytics.

16) Of the four marketing analytics approaches, diagnostic analytics is the most complex.

17) Jeremiah wants to find out if the new advertising campaign is positively impacting sales. He is likely to use diagnostic analytics.

18) Big Data can be leveraged to optimize the marketing mix.

19) It has been demonstrated for some products that exposure to television advertisements influences the number of brand-specific keyword searches conducted online by customers. In this instance, the conclusion drawn is based on attribution.

20) About the only thing you know for certain about your first version of a marketing dashboard is that it will likely look the same in a year or two.

21) One potential pitfall of using a dashboard approach to marketing metrics is not insuring that senior management believe in and understand the dashboard.

22) Return on marketing investment (ROMI) looks at marketing as an investment, not an expense.

23) The expectation is that ROMI and other metrics of marketing performance will begin to decrease in use, as firms attempt to better quantify marketing's contribution to various dimensions of organizational success.

24) Customer relationship management (CRM) is considered critical largely because of ________.

A) internal pressure by employees

B) external pressure by suppliers and vendors

C) competitive pressures in the marketplace

D) increasing demand by customers

E) revised government regulations

25) What is one of the three major objectives of customer relationship management?

A) customer satisfaction

B) customer service

C) customer loyalty

D) customer engagement

E) customer acquisition

26) Customer loyalty is defined as ________.

A) retention of satisfied and loyal profitable customers and channels

B) the degree to which an individual will resist switching from one offering to another

C) the total number of customers who purchase a product

D) increased individual customer margins, while offering the right products at the right time

E) the likelihood that a customer becomes a buzz marketer

27) Customer satisfaction is defined as ________.

A) the degree to which an individual will resist switching from one offering to another

B) the level at which the offering meets or exceeds a customer's expectations

C) retaining satisfied and loyal profitable customers and channels

D) increasing the likelihood that a customer becomes a buzz marketer

E) the number of purchases in a defined period of time

28) Which of the following major objectives of customer relationship management relates to increased individual customer margins, while offering the right products at the right time?

A) customer retention

B) customer service

C) customer acquisition

D) customer profitability

E) customer loyalty

29) What is one of the four elements of the process cycle for customer relationship management?

A) customer interaction

B) customer loyalty

C) customer satisfaction

D) customer support

E) customer profitability

30) Customer touch points and data mining are related to which element of the process cycle for customer relationship management?

A) analysis and refinement

B) supplier interface

C) customer interaction

D) knowledge discovery

E) marketing planning

31) In the CRM process cycle, ________ is the process of analyzing the customer information acquired through various customer touchpoints.

A) analysis and refinement

B) supplier interface

C) customer interaction

D) marketing planning

E) knowledge discovery

32) Which phase of the process cycle for customer relationship management represents the actual implementation of the customer strategies and programs?

A) analysis and refinement

B) supplier interface

C) customer interaction

D) knowledge discovery

E) marketing planning

33) The ________ phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.

A) analysis and refinement

B) supplier interface

C) marketing planning

D) knowledge discovery

E) customer interaction

34) The Juice and Java company uses information from customers who write on its Twitter feed about its products. This is an example of a(n) ________ touchpoint.

A) interactive

B) direct interface

C) noninteractive

D) personal

E) nonpersonal

35) To maximize the use of touchpoints, a firm needs to do all of the following EXCEPT________.

A) identify all potential touchpoints

B) inform customers that you will be using their information

C) develop objectives for what to collect at each touchpoint

D) determine how information will be collected

E) develop policies on how the information will be accessed and used

36) Ichiro is a marketing manager at a consumer products company. Ichiro's company has started selling consumer information to other sources without informing its customers that it is doing so. This is referred to as the ________ of CRM.

A) added benefit

B) dark side

C) unintended consequence

D) evolution

E) legal loophole

37) When Target had a data breach that resulted in the loss of the personal information of 40 million customers, it ________.

A) postponed a campaign focused on Target's corporate citizenship

B) refunded purchases to customers made during a two-week period

C) sent all customers a gift card to Target stores

D) hid the information from its customers

E) fired the employee who caused the data breach.

38) Redefining the selling role within the firm to focus on customer business consultation and solutions is one way that CRM ________.

A) increases profits for the firm

B) keeps its costs down

C) increases the formalization of customer analysis processes

D) maintains customer loyalty

E) facilitates a customer-centric culture

39) ________ means that structure, processes and tools, and managerial knowledge and commitment are formally established in support of the culture.

A) Reliability

B) Formalization

C) Trust

D) Interactivity

E) Accommodation

40) When Lucifer joined his company as CEO, he instituted an organization-wide focus on understanding the requirements of customers, making sure that everyone in the organization understood the customer marketplace. Lucifer was practicing ________.

A) a customer orientation

B) an organizational reorganization

C) a product reflow

D) a human resources policy

E) a culture modification

41) A(n) ________ is a person's belief that understanding and satisfying customers, whether internal or external to the organization, is central to the proper execution of his or her job.

A) personal values system

B) organizational buy-in

C) consumer practice

D) work philosophy

E) customer mind-set

42) ________ refers to the ever-increasing quantity and complexity of data that is continuously being produced by various technological sources.

A) Little data

B) Data mining

C) Big Data

D) A database

E) Information overload

43) ________ relates to the amount of data produced, which is generally measured in bytes, given the digital media in which data is most commonly stored.

A) Volume

B) Velocity

C) Variety

D) Veracity

E) Value

44) ________ relates to the frequency at which data is generated over time and the speed at which it can and should be analyzed and used.

A) Volume

B) Velocity

C) Variety

D) Veracity

E) Value

45) ________ relates to the different types of data, including text, video, images, and audio, to name a few types.

A) Volume

B) Velocity

C) Variety

D) Veracity

E) Value

46) ________ relates to the reliability and validity of the data.

A) Volume

B) Velocity

C) Variety

D) Veracity

E) Value

47) When Keung received the report from the interns who conducted surveys in the mall, he was concerned that they were not properly trained because the data did not match any of his other research. Keung was primarily concerned with the ________ of the data.

A) volume

B) velocity

C) variety

D) veracity

E) value

48) Bjorn felt that the focus groups did not give him enough quantitative information to make a decision, so he directed his managers to conduct surveys online and look for secondary research. Which characteristic of Big Data is Bjorn trying to achieve?

A) volume

B) velocity

C) variety

D) veracity

E) value

49) Mr. Evans is a fan of using Big Data because of its ability to generate a large amount of data that can be organized and quantified. Mr. Evans likes the ________ characteristic of Big Data.

A) volume

B) velocity

C) variety

D) veracity

E) value

50) Fred has a sales meeting coming up and he needs to know sales figures by product and by region as quickly as possible so he can direct his managers on their presentations. Fred needs the ________ characteristic of Big Data.

A) volume

B) velocity

C) variety

D) veracity

E) value

51) The CFO of BakersMark wasn't sure about using Big Data, and he couldn't justify the expense for collecting and storing it. In this case, he was concerned about the ________ of Big Data.

A) volume

B) velocity

C) variety

D) veracity

E) value

52) ________ data refers to data that is generated in such a way that a logical organization is imposed on it during its generation, thus enabling it to be more readily analyzable for knowledge creation.

A) Big

B) Abstract

C) Structured

D) Unstructured

E) Concrete

53) When you complete a form online with your name, address, and credit card information in order to make a purchase, you are giving the company ________ data that can populate a relational database or spreadsheet.

A) unsecured

B) abstract

C) structured

D) unstructured

E) soft

54) After staying in a boutique hotel in Chicago, Marissa posted a picture on her Facebook feed and described how fabulous it was. This kind of information is considered ________ data.

A) unsecured

B) abstract

C) structured

D) unstructured

E) soft

55) Tamra was so upset about how she was treated when she went on the Eiffel Tower tour that she recorded a video rant and posted it on YouTube. This is an example of ________ data.

A) unsecured

B) abstract

C) structured

D) unstructured

E) soft

56) ________ data contains some elements of structure that make it easier for machines to understand its organization, but still contains parts that do not possess an appropriate level of structure to make them readily analyzable by automated means for knowledge creation.

A) Unsecured

B) Semi-structured

C) Unstructured

D) Soft

E) Abstract

57) ________ is a major source of data generation that will continue to grow in importance as more people rely on the Internet.

A) Face-to-face research

B) Mail surveys

C) Focus groups

D) Web-related activity

E) Observation

58) The use of ________ at an early stage in a customer's exploration of an e-commerce website can provide insight into the state of his or her intentions.

A) web logs

B) social media

C) competitive surfing

D) phishing

E) clickstream data

59) Which of the six key sources of Big Data is being used when a company collects Big Data on customers in order to sell it to other organizations?

A) data from business systems

B) data from Internet-connected devices

C) data from mobile apps

D) data from commercial entities

E) data from government agencies

60) Big Data from ________, such as Cartwheel from Target, can be used to assist customers in finding in-store deals and provides opportunities for retailers to maximize the value of in-store shopping experiences.

A) business systems

B) Internet-connected devices

C) mobile apps

D) commercial entities

E) government agencies

61) ________ include a set of methods facilitated by technology that utilize individual-level and market-level data to identify and communicate meaningful patterns within the data for the purpose of improving marketing-related decisions.

A) Customer decision systems

B) Computer management systems

C) Marketing databases

D) Structured surveys

E) Marketing analytics

62) Kalea works for a large global corporation. Her job is to conduct market analyses and manage the computational costs associated with them. Kalea is MOST likely a(n) ________.

A) marketing manager

B) high-level executive

C) marketing analyst

D) financial manager

E) economist

63) Into the Abyss is an outdoor clothing company that is just starting to conduct analyses on new data. Which approach would be the appropriate first step before employing more complex analyses?

A) descriptive analytics

B) predictive analytics

C) prescriptive analytics

D) diagnostic analytics

E) determinant analytics

64) An approach using ________ analytics utilizes data to make predictions about future marketing outcomes of interest.

A) descriptive

B) predictive

C) prescriptive

D) diagnostic

E) determinant

65) An approach using ________ analytics involves determining the optimal level of marketing-relevant factors for a specific context by considering how adjusting their levels in varying ways will impact different marketing outcomes.

A) descriptive

B) predictive

C) prescriptive

D) diagnostic

E) determinant

66) What type of marketing analytics is being used when data is used from likes for posts on Facebook?

A) Web analytics

B) social media analytics

C) retail analytics

D) CRM analytics

E) demographic analytics

67) ________ is an analytic method that identifies which products or services to recommend based on a determination of how similar a product or service seems to be to those that the customer has demonstrated a preference for in the past, or is currently considering.

A) Collaborative filtering

B) Attribution

C) Targeting

D) Content filtering

E) Content segmenting

68) ________ is an analytic method that predicts a customer's preferences for products or services based on the observed preferences of customers who are perceived to be similar.

A) Collaborative filtering

B) Attribution

C) Targeting

D) Content filtering

E) Content segmenting

69) Personalization can be achieved at three possible levels of granularity: individual, segment, and ________.

A) group

B) mass

C) customer

D) product

E) geographic

70) The marketing ________ is a comprehensive system providing managers with up-to-the-minute information, including data such as actual sales versus forecast and progress on marketing plan objectives.

A) accelerator

B) matrix

C) dashboard

D) equation

E) strategy

71) What is NOT an element of a great marketing dashboard?

A) earnings report

B) tools for customer insights

C) goals and objectives

D) predictive value

E) forecasting

72) Taking a dashboard approach to marketing metrics goes a long way toward enabling successful marketing planning. However, several potential pitfalls exist in its execution, such as ________.

A) very little reliance on "inside-out" measurement

B) too few tactical metrics

C) forgetting to market the dashboard internally

D) not utilizing the approach to create marketing plans

E) too much strategic insight

73) To compete in today's market, how often should firms focus on marketing planning so that managers and executives have the core information about progress toward relevant goals and metrics at their fingertips?

A) at least each week

B) at least each month

C) at least once a month

D) at all times

E) at decision-making times

74) Two primary goals of any dashboard are diagnostic insight and ________.

A) intuitive insight

B) intuitive focus

C) predictive foresight

D) assuming results

E) dictating goals

75) One of the benefits of a marketing dashboard is that it fosters a(n) ________ organization that values fact-based, logical decision making.

A) informational

B) learning

C) quantitative behavioral

D) analyzing

E) evolving

76) A dashboard creates transparency in marketing's goals, operations, and performance. This in turn ________.

A) leads to smaller marketing budgets

B) leads to animosity among departments

C) increases marketing's perceived credibility and trust by others

D) makes marketing less attractive to key decision makers

E) diminishes the alliances between marketing and the rest of the firm

77) A marketing dashboard uses graphical representations of crucial metrics in ways that begin to show, often for the first time, the direct, understandable links between marketing initiatives and ________.

A) stock prices

B) the number of employees

C) the number of products sold

D) financial results

E) other expenses

78) In some cases, a marketing dashboard can overly rely on ________, putting the focus on what you already know.

A) inside-out measurement

B) external measurement

C) strategic insights

D) partial measurement

E) internal marketing

79) A potential pitfall in marketing dashboards is that a company becomes too focused on tactical measures that may overshadow measures of ________.

A) immediacy

B) tenacity

C) locus of control

D) strategic insight

E) financial performance

80) There are times when marketers forget that marketing is not just a department, and they fail to market the dashboard to ________.

A) customers

B) suppliers

C) key stakeholders

D) the accounting group

E) the finance group

81) Investment decisions in marketing must consider the following elements EXCEPT ________.

A) level of investment

B) returns

C) risks

D) human resources

E) hurdle rates

82) ROBI stands for return on ________ investment.

A) brand

B) basic

C) budget

D) bottom line

E) Big Data

83) If a low-risk marketing program has a return on marketing investment (ROMI) of 4.0, this means that any marketing program must generate at a minimum $4.00 in revenue for every ________ in marketing expenditure.

A) $1

B) $20

C) $100

D) $200

E) $5

84) When your boss, Fernando, says that you need a ROMI of 5.0, he is describing the ________ for the marketing investment.

A) risk factor

B) suitability factor

C) total rate

D) hurdle rate

E) bounce rate

85) Which of the following is one of the basic elements that should be considered in making investment decisions in marketing?

A) bounce rates

B) inflation rates

C) hurdle rates

D) conversion rates

E) expense rates

86) One of the problems with ROMI is that it often focuses on ________ rather than looking at the effects or changes in brand equity.

A) long-term strategic goals

B) short-term incremental profits and expenditures

C) long-term relationship marketing goals

D) short-term tactical perspective

E) short-term target marketing goals

87) Describe the four elements of the CRM process cycle.

88) What is Big Data? How is it relevant to marketing? Describe the four Vs of Big Data.

89) There are six key sources of Big Data that capture data on both potential and current customers to yield actionable insights. Name three of them and give an example of each.

90) Compare and contrast the four key types of marketing analytics: descriptive, diagnostic, predictive, and prescriptive.

91) Describe the two goals of a marketing dashboard, and at least five of the elements that comprise it.