Multiple choice questions:
1. Winning companies improve the value of their customer base by excelling at each of the following strategies EXCEPT ________.
retaining all customers regardless of profitability
reducing the rate of customer defection
increasing the longevity of the customer relationship
making low-profit customers more profitable or terminating them
focusing disproportionate efforts on high-value customers
2. The aim of customer relationship management (CRM) is to produce high customer ________.
value
loyalty
profitability
satisfaction
equity
3. A customer touch point in the airline industry would include an item such as ________.
reservations
mechanics' ability to service the airplanes
ease of access to the airport
the value of air travel versus surface transportation
competency of a travel agent
4. With the ________ heuristic, the consumer sets a minimum acceptable cutoff level for each attribute and chooses the first alternative that meets the minimum standard for all attributes.
conjunctive
lexicographic
elimination-by-aspects
primary
secondary
5. CRM technology can help motivate employees by ________.
analyzing customer revenue and cost data to identify current and future high-value customers
better targeting the company's direct marketing efforts
tracking customer-service satisfaction levels
aligning employee incentives and metrics
developing new pricing models
6. All of the following are methods to form strong customer bonds EXCEPT ________.
creating superior products, services, and experiences for the target market
making it easy for customers to reach the appropriate company personnel and express their needs, perceptions, and complaints
organizing and making accessible a database of information on individual customer needs, preferences, contacts, purchase frequency, and satisfaction
running award programs recognizing outstanding employees
concentrating the planning and management of the customer satisfaction and retention process within the marketing department
7. All of the following would be considered to be strategies for approaching consumers who had rejected your company's model of a product for another competitive brand EXCEPT ________.
redesign your company's product
alter beliefs about your company's brand
covertly alter the qualitative data about your product
alter beliefs about competitors' brands
call attention to neglected attributes
8. ________ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.
Perceived usefulness
Failure avoidance rate
Report rating
Customer-perceived value
Competitors' market share rate
9. ________ involves the use of sophisticated statistical and mathematical techniques such as cluster analysis, automatic interaction detection, predictive modeling, and neural networking.
Data management
Data marketing
Target market analysis
Data accumulation
Datamining
10. Which of the following is considered to be one of the four problems that can deter a firm from using CRM (customer relationship marketing)?
Competitors can often hack into CRM systems.
Building and maintaining a customer database requires a large investment.
It is very difficult to find and train database employees.
Long-term results of such systems are still unproven.
Focusing too much on databases separates a company from its customers.
11. Of customers who register a complaint, ________.
the majority will do business with the company again because they are unwilling to dedicate the effort required to find another vendor
none will do business with the company again
customers whose complaints are satisfactorily resolved spread more word of mouth than those who continue to be dissatisfied
the speed of resolution has no impact on the likelihood of repeat business
between approximately half and three-quarters will do business with the company again if their complaint is resolved
12. Most companies have learned that the ________ are often the most profitable because of service expectations and their willingness to pay almost full price.
large-size customers
midsize customers
small-size customers
niche customers
target market customers
13. Customer relationship management enables companies to provide excellent real-time customer service through the effective use of _______.
reports from mystery shoppers
survey data from customers who have defected
market research into overall consumption trends
individual account information
demographic trend data
14. Using his company's ________ lets a telemarketer respond to customer inquiries more effectively because he or she can see a total picture of the customer relationship.
data warehouse
call back list
call rejection list
corporate database
Better Business Bureau contacts
15. The ________ says people have a general tendency to attribute success to themselves and failure to external causes.
availability heuristic
trait-role theory
awareness set
anchoring heuristic
hedonic bias
16. All of the following are examples of the perils of CRM EXCEPT ________.
implementing CRM before creating a customer strategy
the enormous cost that might eventually drain significant profits from the organization
rolling out CRM before changing the organization to match
assuming more CRM technology is better
stalking, not wooing, customers
17. Consumers often choose and use brands that have a brand personality consistent with how they see themselves, also known as the ________.
actual self-concept
ideal self-concept
others' self-concept
prohibitive self-concept
suggestive self-concept
18. Harley-Davidson sells more than motorcycles and accessories. Its dealerships also sell branded clothing and licensed goods. This expansion of dealership sales offerings is an attempt to increase the value of the customer base by ________.
reducing the rate of customer defection
increasing the longevity of the customer relationship
enhancing the growth potential of each customer through cross-selling
making low-profit customers more profitable
terminating low-profit customers
19. A(n) ________ customer is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling, and servicing that customer.
profitable
semiprofitable
unprofitable
niche
target
20. Cognitive psychologists believe that memory is ________, so that once information becomes stored in memory, its strength of association decays very slowly.
very limited
somewhat limited
fluid
often reflective
extremely durable