3)Understanding how customers interact means understanding

Multiple Choice

• how customers purchase and communicate with the firm.
• how customers interact with the product.
• how customers generate product buzz on social media.
• how customers respond to marketing campaigns.
• how customers shape product trends.

4)The data that a company stores and analyzes during the storage and analysis step of the CRM process must be accurate so that the company can

Multiple Choice

• identify and track individual customer in-store movement.
• identify future sales territories for new product and service lines.
• generate short-term relationships to satisfy immediate sales goals.
• produce products and services that meet customer needs and wants.
• maintain satisfying, profitable, and long-term customers.+

5) Which of the following conclusions can a company arrive at based on the evaluation of its customer equity?

Multiple Choice

• The prediction concerning the most profitable customers has been mostly accurate.
• The financial investments on CRM are lesser than the financial return on those investments.
• The company's profits have increased with its increase in share of customer.
• The CRM efforts have led to an increase in the number of goods or services purchased by a consumer.
• The CRM program has successfully focused its efforts on the most profitable customers.

6) The computerized search for meaningful trends in a large amount of data is a process known as

Multiple Choice

• data trending.
• predictive modeling.
• data warehousing.
• trend modeling.
• data mining.

7) What is the rationale behind a company targeting fewer customers with whom to do business?

Multiple Choice

• The company does not have to focus its efforts on customers who need its products and will make a purchase anyway.
• By weeding out unprofitable customers, efforts can be focused on loyal and profitable customers.
• Companies expect the smaller number of customers to market the products for the company.
• Targeting fewer customers allows the company to adopt a one-size-fits-all approach.
• Reducing the number of target customers increases the efficiency of integrated marketing communications.

8) Which of the following strategies allows a company to unify all of its activities under the overarching goal of achieving customer satisfaction through the right actions, attitudes, and systems?

Multiple Choice

• customer relationship management
• relationship marketing
• supply chain management
• lifetime value marketing
• customer segmentation analysis

9) Which of the following instances represents an increase in a company's share of customer?

Multiple Choice

• There is an increase in the number of consumers served by the company.
• There is an increase in the company's market share.
• There is an increase in the number of profitable consumers.
• There is an increase in the number of goods or services purchased by a consumer.
• There is an increase in the average lifetime value of consumers.

10) Key objectives of the first step of the customer relationship management process include

Multiple Choice

• understanding customers' purchase decision-making process.
• analyzing the motivations and reasons behind customer purchases.
• finding out where key customers are located and what purchases they tend to make.
• identifying customers' needs and wants based on current purchases.
• recognizing the relationship between marketing trends and customer purchases.

11) Companies interested in improving customer relationships often engage in an informal process of communicating with customers as a way to reduce the notion that the company is "selling" to them.

True or False

12) If a firm has clients that are competitors, CRM data should

Multiple Choice

• be firewalled.
• shared for mutual benefit.
• not be collected.
• be encrypted.
• used without the knowledge of the clients.

13) The data analysis tool that allows firms to monitor the actual costs of doing business with customers to ensure that they are focusing on the most profitable customers is called

Multiple Choice

• customer segmentation analysis.
• predictive modeling.
• demographic value analysis.
• recency-frequency-monetary analysis.
• lifetime value analysis.

14) At this step of the CRM process, firms develop the ability to customize their activities to target specific customers.

Multiple Choice

• Utilize analysis to evaluate value of customer relationships.
• Utilize analysis to close customer relationships.
• Utilize analysis to compare customer relationships.
• Utilize analysis to build customer relationships.
• Utilize analysis to contrast customer relationships.

15) Which of the following is true of customer relationship management (CRM)?

Multiple Choice

• CRM is an iterative rather than a linear process and revolves around a cycle of activities.
• A company initiates the CRM process by gathering data from various touch points.
• CRM means giving employees permission to make decisions and take action on their own to help their customers.
• Companies need not have a physical or Internet presence to capture CRM data.
• CRM refers to the computerized search for meaningful trends in a large amount of data.