59. A business is trying to determine which customers buy its products online versus going to its retail stores. By doing so, the
firm is engaged in which step of the customer relationship management process?
A. storing and analyzing information
B. gathering specific customer information
60. Which of the following is the best source of information about in-person customer interactions and is particularly helpful in
gathering specific customer information such as contact information and purchase preferences?
A. competitor sales data
B. Facebook and Twitter postings
61. The process that involves the computerized search for meaningful trends in a large amount of data is known as
A. predictive modeling.
62. In the customer relationship management process, after data has been stored, computer programs can analyze the data to
search for meaningful trends that the company can use to build customer relationships. This analysis process is called
A. data warehousing.
B. data trending.
63. The data analysis technique that involves creating customer profiles based on demographic characteristics, purchase
patterns, and other criteria, and placing them into various categories is called
A. lifetime value analysis.
B. demographic value analysis.
64. A local hair salon is analyzing its customer data to determine the last time each customer visited the salon, if he or she
purchased a hair care product, and how much money the customer spends on the salon’s services and products. In essence, it
is trying to determine its customers’ profit potential so it can target them for marketing efforts. What data analysis tool is the
salon using?
D. predictive modeling
E. lifetime value analysis
65. Which data analysis tool allows firms to monitor the actual costs of doing business with customers to ensure that it is
focusing on the most profitable customers?
A. demographic value analysis
B. predictive modeling
66. A firm that uses data to compare the costs of retaining customers and the costs of acquiring new customers with the goal of
determining how much money each type of customer requires is using
D. predictive modeling.
E. recency-frequency-monetary analysis.
67. The data analysis technique that uses sophisticated algorithms to try to determine the future actions of customers is called
A. lifetime value analysis.
B. customer segmentation analysis.
68. Netflix wants to determine which movies customers might rent in the future. In order to do so, the firm looks at customers’
previous rentals, their online reviews of movies, and the movie ratings of all Netflix customers as a whole. Which data analysis
tool is Netflix most likely using?
D. customer segmentation analysis
E. lifetime value analysis
69. The last step of the customer relationship management process is to
D. gather specific customer information.
E. store and analyze information.
70. A firm that uses CRM data to generate coupons for customers based on their past purchases is using the CRM data to
A. reduce order cycle time.
B. build customer equity.
71. Tamika just purchased a membership at local health club. On the way home, she heard a radio commercial for a competing
health club and thought it sounded really good. Now Tamika is questioning whether or not she made the right decision. Tamika
is experiencing
A. postpurchase stress.
B. consumer apprehension.
72. Soon after Victor purchased his new vehicle, he received an e-mail from the company thanking him for his purchase and
explaining all the features of his new car. The e-mail also contained a link to the company’s 100,000 mile club where customers
who have had their vehicles for more than 100,000 miles share stories about positive experiences with the brand. By sending
this e-mail, the firm is most likely attempting to
A. increase ease of doing business.
B. increase consumer equity.
73. What issue highlighted in your text is an ever-present concern for customers regarding CRM systems?
A. the potential for customers to be inundated with company mail
B. the attempt by companies to use customer data to generate product specific promotions
14–26
Topic: Security and Ethical Issues in Customer Relationship Management
74. According to your text, what should companies do to guard against a breach of security in their CRM systems?
A. Store credit card numbers only for the purpose of customer orders.
B. Only allow CRM data to be shared with company affiliates.
75. The measure of the quantity of purchase dollars each customer spends on the company’s products is referred to as share of
A. wallet.
B. market.
76. If a company’s CRM efforts lead to an increase in the number of goods or services purchased by a consumer, then it has
been successful in increasing its
A. lifetime value.
B. customer focus.
14–27
Topic: Determining the Effectiveness of Customer Relationship Management
77. The ratio that compares the financial investments a company puts into gaining and keeping customers to the financial return
on those investments is referred to as
A. lifetime value.
B. customer focus.
78. A company can determine the value of its CRM program by calculating its
A. share of customer ratio.
79. The measurement of how well a CRM program prioritizes customers based on each customer’s profitability is referred to as
A. share of customer.
14–28
Topic: Determining the Effectiveness of Customer Relationship Management
80. Anything a company does that directly touches the customer falls under the realm of _____ _____.
81. Customer service activities are comprised of both human methods and _______ methods.
82. Placing an order for a catalogue item directly with a customer service representative is a _______ method of customer
service.
83. _______ is the ability of a company to deliver a good or service by the time a customer expects to have it available for sale
or consumption.
84. The total amount of time that elapses from the time a customer places an order until the time the product is delivered to the
customer is the _____ _____.
85. Ensuring that customers can depend on receiving a good or service within a stated lead time and that there will be no
problems with the order is the notion behind the customer service objective referred to as _______.
86. Angela ordered a new sweater online. Once the order was complete, the company sent her an e-mail with a link to the
shipping status of her order. Angela could use this link at any time to see exactly where her package was in the delivery
process. This is an example of _____ _____ communication.
87. Many of the world’s companies use _____ _____ for activities that include some form of customer service whether it is
through online chats, blogs or Facebook and Twitter pages.
88. Performance measurements, also known as _______, allow companies to assess whether or not they are doing a good job
servicing their customer.
89. The metric that measures the percentage of an order shipped on time and complete is referred to as _____ _____.
90. If there are 325 items on an order and the firm ships 318 of the items on time, the item fill rate is _______ percent.
91. If a company orders $15,300 worth of product, and the items actually shipped on time are worth $14,500, the dollar fill rate is
_______ percent.
92. _____ time is the time a customer has to wait to talk to or receive a text back from a customer service representative.
14–32
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 14-01 Explain the importance of effective customer service and customer satisfaction to companies.
Topic: Customer Service Metrics
93. Ideally, firms would like the order cycle time to be _______.
94. The ultimate goal of delivering superior customer service is to increase _____ _____.
95. Companies achieve _____ _____ when they meet the needs and expectations their customers have for their goods or
services.
96. The _____ _____ is a marketing strategy that reflects the idea that a firm’s long-term success must include a company-wide
effort to satisfy customer needs and wants.
97. _____ _____ is a mechanism that filters large amounts of information about many consumers’ previous purchases that may
be related in some way in order to predict consumer preferences.
98. _____ is a technique that uses GPS to build a virtual fence around a location, such as a store, and send individually targeted
advertisements to a customer’s phone while he or she is in the location.
99. A strategy that focuses on attracting, maintaining, and enhancing customer relationships, thus building brand loyalty, is
called _______ marketing.
100. Customer ________ refers to the perceived benefits, both monetary and nonmonetary, that a customer receives from a
product compared to the cost associated with obtaining it.
101. Personalizing service by tailoring product information for individual customers in order to provide an exceptional and
personalized shopping experience is known as _____.
102. The corporate culture at Southwest Airlines includes giving employees permission to make decisions and take action on
their own to help their customers. This is the idea behind _______.
103. The process by which companies get new customers, keep the customers they already have, and grow the business by
increasing their share of customers’ purchases is referred to as _____ _____ _____.
104. A _____ _____ is any point at which a customer and the company come into contact.