Ch. 11

Question 1

Among the arguments for the importance of customer retention are:

a. it costs at least seven times as much to acquire a new customer as it does to retain an existing one.
b. a satisfied customer does not talk about the firm and product.
c. reducing customer defections will increase sales, but not necessarily profits.

Answer 1

a. it costs at least seven times as much to acquire a new customer as it does to retain an existing one.

287

Question 2

________ is not a way in which relationship marketing differs from transactional marketing

a. Networked organizations instead of hierarchical organizations
b. Long term focus instead of short term perspective
c. Customer dialog instead of isolated marketing research projects

Answer 2

a. Networked organizations instead of hierarchical organizations

290

Question 3

________ is one of the elements of the Peppers and Rogers CRM model.

a. Analysis
b. Differentiation
c. Involvement

Answer 3

b. Differentiation

293

Question 4

The CRM process:

a. is driven by customer information.
b. makes segmentation obsolete.
c. is useful only for outbound marketing programs.

Answer 4

a. is driven by customer information.

296

Question 5

What are foundations of a CRM program?

a. Sales force automation and customer service
b. Marketing and promotion
c. Customer service and email marketing

Answer 5

a. Sales force automation and customer service

291

Question 6

Analytical CRM includes:

a. database enhancement.
b. performance measurement.
c. both of the above.

Answer 6

a. database enhancement.
b. performance measurement.
c. both of the above.

ANS: C REF: p. 296

Question 7

Integrating social media data into tactical CRM programs:

a. carries inherent privacy challenges.
b. has been fully automated.
c. involves collecting easily quantifiable data.

Answer 7

a. carries inherent privacy challenges.

297

Question 8

A/An ________ profile can be developed when a person registers on or buys something from a website.

a. anonymous
b. identified
c. statistical

Answer 8

b. identified

302

Question 9

Cisco’s success in customer reactivation depended upon:

a. collecting as much data as possible on each business person.
b. contacting business professionals as individuals.
c. developing registration forms.

Answer 9

b. contacting business professionals as individuals.

304

Question 10

The components of customer lifetime value include:

a. all revenue after the first year.
b. growth in amount spent with the enterprise.
c. spending transferred from competitors.

Answer 10

b. growth in amount spent with the enterprise.

287

Question 11

The customer lifecycle allows marketers to:

a. identify their best prospects.
b. target lapsed customers and win back.
c. both of the above.

Answer 11

a. identify their best prospects.
b. target lapsed customers and win back.
c. both of the above.

ANS: C REF: p. 294

Question 12

Tesco’s Club card Program relies for its success upon:

a. data mining and segmentation.
b. qualitative research.
c. social media monitoring.

Answer 12

a. data mining and segmentation.

306

Question 13

A CRM Vision includes using ________ to create a Seamless Customer Experience.

a. customer touchpoints and technology
b. CRM failure rates
c. the promise of CRM

Answer 13

a. customer touchpoints and technology

312

Question 14

Registration on a site can:

a. furnish data for personalization of communications.
b. provide an email address for CRM contacts.
c. both of the above.

Answer 14

a. furnish data for personalization of communications.
b. provide an email address for CRM contacts.
c. both of the above.

ANS: C REF: p. 302

Question 15

Which of the following is a true statement about the CRM process?

a. It makes segmentation obsolete.
b. It is driven by customer information.
c. It is useful only for outbound marketing programs.

Answer 15

b. It is driven by customer information.

296

Question 16

What functions do cookies perform in the targeting and personalization process?

a. Identify the visitor’s e-mail address.
b. Collect data about the visitor’s activities on all websites.
c. Store data that enables the site to deliver relevant content.

Answer 16

c. Store data that enables the site to deliver relevant content.
pp. 301, 304

Question 17

Among the reasons for the failure of CRM programs are:

a. lack of software applications needed to support CRM.
b. lack of buy-in and leadership from top management.
c. lack of understanding of the requirements of CRM.

Answer 17

b. lack of buy-in and leadership from top management.

311

Question 18

________ are a technology that broadens the ability to connect with consumers

a. Computer clips
b. Mobile branded apps
c. Content management Systems

Answer 18

b. Mobile branded apps

307

Question 19

Seamless customer experience refers to:

a. using the same technology in all marketing channels.
b. equally satisfying experience at all customer touchpoints.
c. offering different value propositions to different classes of customers.

Answer 19

b. equally satisfying experience at all customer touchpoints.

311

Question 20

Which of the following is a requirement for CRM success?

a. Focusing on market share
b. Lowering the cost of customer service
c. Capturing and using customer data

Answer 20

c. Capturing and using customer data

292

Question 21

Marketing is evolving to become more ________ vs. ________ focused.

a. segment, acquisition
b. product, customer
c. retention, profitability

Answer 21

b. product, customer

290