Exam Questions Chapter 15 Customer Relationship Management

CHAPTER FIFTEEN CUSTOMER RELATIONSHIP MANAGEMENT

Multiple Choice

1. Which of the following represents a major shift in current marketing practice?
2. From high fixed costs to low fixed costs
3. From mass marketing to individualized marketing
4. From focusing on a small base of customers to focusing on acquiring many new customers
5. All of the above
6. A firm using relationship marketing focuses on ________.
7. market share
8. wallet share
9. time share
10. relationship share
11. Companies can use relationship marketing techniques to build relationships with ________.
12. customers
13. employees
14. lateral partners
15. all of the above
16. Which of the following is a facet of customer relationship management (CRM)?
17. customer service
18. sales force automation
19. marketing automation
20. all of the above
21. Social CRM means that companies must interact with customers ________.
22. on the customer’s terms
23. based on company data
24. based on company strategy
25. based on company desires
26. In order to keep customers from viewing their communications as spam, the firm should build relationships by ________.
27. offering promotions
28. purchasing new consumer lists periodically
29. using consumer information to build more precise target profiles
30. rewarding customers for giving out their friend’s e-mail addresses
31. Which of the following is referred to as level one of relationship marketing?
32. Marketers learn the names and needs of customers
33. Marketers create solid solutions to customer problems
34. Marketers build a financial bond with customers by using pricing strategies
35. Marketers stimulate social interaction with customers
36. Which of the following is an advantage of connecting customers with supply chain businesses?
37. all companies will share transaction data so inventories can be kept low
38. customer service reps will have up-to-the-minute inventory information and be able to help consumers more immediately
39. upstream firms can use data to design products that better meet consumer needs
40. all of the above
41. As more companies integrate customer relationship management (CRM) and supply chain management (SCM) activities ________.
42. they will experience an increase in variable costs
43. they will slightly less able to learn how to create value throughout the supply chain
44. they will become more responsive to individual customer needs
45. all of the above
46. If two or more companies were to link their intranet networks for the purpose of sharing information, then they would have a(n) ________.
47. supply chain
48. extranet
49. ethernet
50. internet
51. Companies obtain transactional, behavioral, and interaction data about prospects, business customers, and end customers through ________.
52. personal disclosure
53. automated tracking of the sales force
54. website activity
55. all of the above
56. CRM allows companies to leverage their resources by investing more in the ________ customers.
57. average
58. least profitable
59. most lucrative
60. none of the above
61. When everyone in the company who touches the customer understands all aspects of the customer’s relationship with the company, this is regarded as ________.
62. owning the customer’s total experience
63. streamlining business processes that impact the customer
64. having a 360-degree view of the customer relationship
65. fostering community
66. Important tools that aid firms in customizing products to groups of customers or individuals include ________ strategies that reside on the company’s web and e-mail servers, and ________ strategies that are initiated by internet users.
67. push; pull
68. pull; push
69. marketing; brochureware
70. marketing; inquiry
71. Using _________ firms can develop customized web pages based on visitor behavior.
72. Web log analysis
73. ongoing e-mail
74. client-side tools
75. agents
76. ________ allows marketers to monitor users’ online behavior and make instantaneous and/or automatic adjustments to online promotional offers and web content.
77. Collaborative filtering
78. Real-time profiling
79. An agent
80. E-mail communication
81. Through real-time chat, forums, and email postings at its website, companies are able to ________.
82. aggregate data used to design marketing mixes that meet user needs
83. build community
84. learn about products
85. all of the above
86. Software agents such as shopping agents and search engines ________.
87. scour the internet for terms matching the users’ search criteria
88. use web portals to access partner information
89. are forms of experiential marketing
90. match user input to databases and return customized information
91. Individualized web portals are most often used to build relationships in the ________.
92. B2C market
93. B2B market
94. B2G market
95. G2C market
96. All of the following are metrics used to assess the internet’s value in delivering CRM except ________.
97. lifetime value (LTV)
98. cost savings
99. employee satisfaction
100. customer satisfaction

True/False

1. Most businesses spend more money acquiring new customers than they spend keeping current customers.
2. True
3. False
4. Customer service occurs only post-purchase when customers have questions or complaints.
5. True
6. False
7. Most customers would prefer to be brand disloyal in favor of finding the lowest price for each purchase, so marketers must entice them into loyalty through special offers.
8. True
9. False
10. One important tenet of CRM is that it is better to attract, retain, and grow customers than to focus only on customer acquisition.
11. True
12. False
13. Social CRM does not retain any of the tenets of CRM 1.0.
14. True
15. False
16. Permission marketing dictates that customers will be pleased to receive e-mail for which they have opted-in.
17. True
18. False
19. Lively and useful chat and forums increase repeat site visits and stickiness.
20. True
21. False
22. Post-transaction customer service is an important part of the customer care life cycle.
23. True
24. False
25. No matter how good a company may be at retaining customers, new customer acquisition is still an important activity.
26. True
27. False
28. Personalization involves ways that marketers individualize in an impersonal, computer networked environment.
    1. True
    2. False
29. Unlike SCM, CRM activities usually refer to back-end operations.
    1. True
    2. False

Essay Questions

1. Why are the three pillars of relationship management?
2. Why is it important to implement CRM effectively and efficiently? In what ways can a firm ensure that their use of CRM is both effective and efficient?
3. Discuss the major principles behind Social CRM (CRM 2.0), and contrast it with CRM 1.0.
4. What is the difference between push strategies and pull strategies used by firms that
5. The text notes that relationship marketing is practiced on three levels. Describe each of the three levels from the lowest to the highest.
6. Explain what is meant by CRM-SCM Integration. What are the advantages of this integration for internet companies?
7. Give an example of a time when you experienced some aspect of CRM via the internet. Did this experience represent a CRM success or failure in your mind? Why?