105. The _______ has proven to be an invaluable tool for customer relationship management by facilitating the collection of
individualized data to use to send personalized messages to potential customers.
106. Customer relationship management is a(n) _______ process, meaning that the firm repeats the sequence of steps as
necessary to reach the desired result.
107. A _______ serves as an excellent source of information about in-person customer interactions.
108. _____ _____ involves the computerized search for meaningful trends in a large amount of data.
109. Customer _____ analysis involves creating customer profiles based on demographic characteristics, purchase patterns,
and other criteria, and placing them into various categories.
110. Lifetime value analysis allows a company to monitor the actual costs of doing business with customers to ensure that it is
focusing on the most _____ customers.
111. _____ _____ uses sophisticated algorithms to try to determine the future actions of customers.
112. By congratulating the buyer on his or her purchase choice and reinforcing the best aspects of the good or service, a firm
can use CRM information to combat _____ _____.
113. There is a general discomfort with invasion of privacy among consumers. To guard against a breach of security, CRM
systems must have _______ in place to prevent hacking and protect the privacy of customers.
114. _____ _____ _____ is a measure of the quantity of purchase dollars each customer spends on the company’s products.
115. The ratio that compares the financial investments a company puts into gaining and keeping customers to the financial
return on those investments is called _____ _____.
116. When it comes to customer focus, a company directs its personal selling efforts on those customers who are most _____.
117. The CRM efforts of a company, if done right, should be able to predict which customers will generate the most profit over a
long period of time, meaning those customers with a high _____ _____.
118. While poor customer service is almost guaranteed to frustrate customers, good customer service alone will always make
customers happy.
119. Anything a company does that directly touches the customer falls under the realm of customer service.
120. The order cycle is 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.
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 14-01 Explain the importance of effective customer service and customer satisfaction to companies.
Topic: The CRM Process
121. Firms develop a reputation for reliability by establishing effective inventory management policies, performing accurate sales
forecasts, and maintaining effective transportation and distribution operations.
122. Ease of doing business refers to the amount of effort it takes a firm to produce and promote a product.
123. The fill rate measures the percentage of the total number of items on the order that the firm shipped on time.
124. If the items ordered are worth $15,450, and the items shipped are worth $13,998, then the dollar fill rate is approximately
91 percent.
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Difficulty: 3 Hard
Learning Objective: 14-01 Explain the importance of effective customer service and customer satisfaction to companies.
Topic: Customer Service Metrics
125. On-time delivery measures how many shipments are shipped on time.
126. At the pre-transaction point, the firm measures the ability to accurately provide shipment status and track the order.
127. Customer-driven companies strive to delight, rather than simply satisfy, their customers.
128. Firms with a customer orientation set an expectation that all employees should seek to provide value to the customer in a
way that meets, or hopefully exceeds, the customer’s expectations.
129. The ultimate goal of delivering superior customer service is to increase brand recognition.
130. When customer perceptions of value differ widely, a one-size-fits-all customer service policy will be most effective at
ensuring the majority of customers will become loyal customers.
131. Companies want to capture and retain customers that will be not only loyal but also profitable, which often means targeting
as many customers as possible with whom to do business.
132. Relationship marketing is a strategy that focuses on attracting, maintaining, and enhancing customer relationships, thus
building brand loyalty.
133. Customer value refers to the actual monetary benefits a customer receives from the purchase of a good or service.
134. A key element of clientelling is empowering salespersons to provide an exceptional experience for the customer.
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Topic: Improving Customer Relationships
135. A customer’s negative experiences with a company do not carry as much weight as the positive experiences.
136. The broad focus of customer relationship management allows companies to spend time and money prospecting for new
customers rather than trying to obtain maximum profits from customers they already have.
137. A company initiates the CRM process by identifying its current customers.
138. Predictive modeling allows the company to monitor the actual costs of doing business with customers to ensure that it is
focusing on the most profitable customers.
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Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 14-04 Describe how customer relationship management uses customer information to improve relations between businesses and customers.
Topic: Customer Relationship Management
139. Cognitive dissonance is also referred to as buyer’s remorse.
140. Companies seeking to protect customer information need only rely on the laws the U.S. government has put in place for
protecting the financial, health, telephone, and e-mail information of citizens.
141. Share of customer differs from market share in that it measures the quantity of purchase dollars each customer spends on
the company’s products rather than the number of customers.
142. Lifetime value measures the extent to which a company puts effort into servicing its customers’ needs, based on an
understanding of each customer’s profitability.
143. What are the functions in the order cycle?
144. How do customer relationship management (CRM) technologies assist marketers?
145. How can organizations improve customer relationships?
146. You would like to develop a customer relationship management (CRM) for your specialty leather goods store, and have
started the process of developing this system. You have identified your current customers and understand how these customers
interact with your business. You are in the process of gathering customer information using customer purchase history, your
customer loyalty program, and customer surveys. What are the next steps in your pursuit of establishing a CRM program?
147. Your family owns and operates a horse farm where you board horses, provide riding lessons, and have a small retail
operation where you sell saddles, horse food and other specialty products. When looking at the effectiveness of your CRM
program what criteria can you use to determine if your CRM program is working?
148. What are some of the metrics that you can use to track customer service performance for your auto parts and accessories
business?
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Chapter 14 Test Bank Summary
Category
# of Questions
92
4
19
21
12
140
3
19
74
52
74
55
19
60
18
16
38
14–50
4
12
14
28
27
12
18
17
4
25
3