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