Reference no: EM13873095

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