IS 220 Chapter 11

42. If a customer begins a chat with a target.com representative and ends up on the phone with that person to discuss an issue, this activity has involved multiple _______________. (a) Customer interaction centers. (b) Customer engagement centers. (c) Coupon interaction systems. (d) Company interaction centers.

(a) Customer interaction centers.

44. Which of the following is not an essential technology that enable an analytical CRM system? (a) Data warehouses. (b) Data mining. (c) Smart phones. (d) Business intelligence.

(c) Smart phones.

71. Which of the following is an important enabler of CRM? a) recognizing that there are many customer touch points b) recognizing the necessity of treating all customers the same c) recognizing the need for sophisticated CRM information systems d) recognizing the need for sophisticated customer databases e) recognizing the need for a data warehouse

a) recognizing that there are many customer touch points

76. Which of the following statements concerning customer relationship management is false? a) CRM is a customer-driven strategy. b) CRM constitutes a specific use of technology. c) Building long-term relationships with customers creates value for the organization. d) It costs more to bring a customer back from a competitor than it does to keep him or her satisfied in the first place. e) The basic concept behind CRM is to treat different customers differently.

b) CRM constitutes a specific use of technology.

93. A check-in kiosk at the airport is which type of CRM application? a) Inbound telesales b) Customer-touching c) Outbound telesales d) Sales e) Customer-facing

b) Customer-touching

94. Electronic CRM applications are considered to be which type of CRM application? a) Inbound telesales b) Customer-touching c) Outbound telesales d) Sales e) Customer-facing

b) Customer-touching

33. Cross-selling is a sales strategy that a) Provides the customer the opportunity to purchase products or services with a higher value than the customer's original selection. b) Markets products to customers based on previous purchases (e.g., Amazon recommends books that are similar to previous book purchases). c) Allows customers to configure the components of the product or service they select (e.g., The Gap allows customers to "mix and match" an entire wardrobe). d) Uses a customer's past pattern of buying to influence future purchases (e.g., airlines give various rewards to frequent flyers).

b) Markets products to customers based on previous purchases (e.g., Amazon recommends books that are similar to previous book purchases).

45. Microsoft partnered with what company to provide GPS service to the CRM? a) Garmin. b) TomTom. c) Nuvi. d) Apple. e) Google.

b) TomTom.

89. _____ is a sales strategy which the business person will provide customers the opportunity to purchase higher-value related products. a) Bundling b) Up-selling c) Re-selling d) Additional selling e) Cross-selling

b) Up-selling

84.Which of the following allows customers to connect to a company representative and conduct an instant messaging session? a) information help desk b) live chat c) customer interaction center d) teleconference e) videoconference

b) live chat

74. Which of the following is the most important enabler of the 360-degree view of the customer across an organization? a) the organization's database b) the organization's data warehouse c) the organization's CRM systems d) the organization's collaborative CRM systems e) the organization's analytical CRM systems

b) the organization's data warehouse

40. Analytical CRM is a) An organizational strategy that is customer-focused and customer-driven. b) An organizational strategy that uses data consolidation and 360-degree view of the customer to communicate information about the customer to all relevant functions. c) A system that examines customer behavior and perceptions to provide business intelligence. d) A system that focuses on sales force automation and campaign management.

c) A system that examines customer behavior and perceptions to provide business intelligence.

103. The benefits of open-source CRM include all of the following except: a) It is easy to customize. b) It is favorably priced. c) It has more functionality than in-house CRM systems. d) It updates data and fixes errors rapidly. e) It has extensive support information.

c) It has more functionality than in-house CRM systems.

78. _____ systems support the front-office business processes which directly interact with customers. a) CRM b) Collaborative CRM c) Operational CRM d) Analytical CRM e) Transactional CRM

c) Operational CRM

73. The complete data on a customer is called: a) a profile b) a record c) a 360-degree view d) a file e) a consolidated customer map

c) a 360-degree view

87. AT&T sells telephone services that include local and long-distance service, voice mail service, caller ID, and digital subscriber line access to the Internet. This is a form of: a) up-selling b) cross-selling c) bundling d) customer relationship management e) customer intimacy

c) bundling

82. The sales, marketing, and service functions are part of: a) CRM b) analytical CRM c) operational CRM d) collaborative CRM e) Transactional CRM

c) operational CRM

98. _____ systems study customer behavior and perceptions to provide business intelligence. a) CRM b) Collaborative CRM c) Operational CRM d) Analytical CRM e) Transactional CRM

d) Analytical CRM

92. _____ are applications and technologies with which customers interact and typically help themselves. a) Customer-facing CRM applications b) Up-selling activities c) Inbound telesales d) Customer-touching applications e) Outbound telesales

d) Customer-touching applications

80. Which of the follow statements concerning customer interaction centers (CIC) is false? a) A call center is an example of a CIC. b) A Help Desk is an example of a CIC. c) In outboard telesales, the salesperson contacts the customer. d) In inboard telesales, the customer calls the CIC. e) Live chat provides an advantage over telephone conversations.

d) In inboard telesales, the customer calls the CIC.

69. Over time, the customer relationship with vendors has become more impersonal for all of the following reasons except: a) people move from farms to cities b) consumers became mobile c) supermarkets and department stores proliferated d) customer relationship management systems were developed e) the Internet grew rapidly

d) customer relationship management systems were developed

86. _____ is the practice of marketing additional related products to customers based on a previous purchase. a) Bundling b) Up-selling c) Re-selling d) Additional selling e) Cross-selling

e) Cross-selling

97. Which of the following is not a customer-touching CRM application? a) FAQs. b) Loyalty programs. c) Personalized Web Pages d) Automated e-mail Section reference 1. e) Shopping cart

e) Shopping cart

1. Methods that organizations use to interact with their customers are called: a) point of presence b) the CRM point c) market entry point d) channel point e) touch point

e) touch point

41. Which of the following does NOT describe a customer touching CRM? (a) Storefront signage displaying a sale at Target. (b) Customer touch screens to help the shopping experience. (c) FAQ about how to order online at target.com. (d) Personalized Web pages at target.com based on history.

(a) Storefront signage displaying a sale at Target.

43. Which of the following best describes one of the purposes of implementing an analytical CRM system? (a) To enhance financial forecasting and customer profitability analysis. (b) To keep records of day-to-day business transactions. (c) To improve the scalability of the corporate database. (d) To integrate an organization's information system with those of its suppliers. (e) To allow a company to streamline its logistical operations in its supply chain.

(a) To enhance financial forecasting and customer profitability analysis.

46. Which of the following is most likely to be a cloud-based CRM? (a) Open-source CRM. (b) On-demand CRM. (c) Mobile CRM. (d) Analytical CRM.

(b) On-demand CRM.

48. Which of the following is likely to provide the quickest startup time? (a) Open-source CRM. (b) On-demand CRM. (c) Mobile CRM. (d) Operational CRM.

(b) On-demand CRM.

47. Based on this chapter, which of the following is most likely to use GPS location? (a) Open-source CRM. (b) On-demand CRM . (c) Mobile CRM. (d) Operational CRM.

(c) Mobile CRM.

34. Analytical customer relationship management systems a) Automate service requests, complaints, product returns, and requests for information. b) Automatically record all of the components in a sales transaction process, including all contacts made with a customer. c) Create statistical models to forecast the acquisition, retention, and loss of customers. d) All of these.

a) Automate service requests, complaints, product returns, and requests for information.

90. _____ occurs when a business sells a group of products or services together at a lower price than the combined individual prices of the products. a) Bundling b) Up-selling c) Re-selling d) Additional selling e) Cross-selling

a) Bundling

77. Which of the following statements is false? a) Data consolidation and a 360-degree view mean the same thing. b) Data about customers in various functional areas were difficult to share. c) Collaborative CRM systems enable customers to provide direct feedback to the organization d) CRM systems use a data warehouse to make all customer data available to every unit of the business. e) Organizations can use blogs for customer input about their products and services.

a) Data consolidation and a 360-degree view mean the same thing.

102. Potential problems with on-demand CRM include all of the following except: a) It increases costs for the organization. b) The vendor could prove unreliable. c) It is difficult to modify hosted software. d) It may be difficult to integrate hosted software with existing software in the organization. e) Giving strategic data to a vendor is risky.

a) It increases costs for the organization.

22. Organizational goals for customer relationship management include a) Maximizing revenue stream from a given customer over multiple years. b) Maximizing profit from current sales to a customer. c) Maximizing customer churn. d) All of these are goals for CRM.

a) Maximizing revenue stream from a given customer over multiple years.

88. You are in the market for a small economy car. The salesperson has you drive the economy car, and then hands you the keys to a mid-sized car of the same brand for you to drive. The salesperson is engaged in: a) up-selling b) cross-selling c) bundling d) customer relationship management e) customer intimacy

a) up-selling

100. _____ examines customer data in detail for designing and executing targeted marketing campaigns. a) CRM b) Analytical CRM c) Operational CRM d) Collaborative CRM e) Transactional CRM

b) Analytical CRM

12. _____ analyze customer data for designing and executing targeted marketing campaigns. a) CRM b) Analytical CRM c) Operational CRM d) Collaborative CRM e) Transactional CRM

b) Analytical CRM

99. _____ creates statistical models of customer behavior and the value of customer relationships over time. a) CRM b) Analytical CRM c) Operational CRM d) Collaborative CRM e) Transactional CRM

b) Analytical CRM

91. _____ is a form of _____. a) Up-selling, re-selling b) Bundling, cross-selling c) Up-selling, bundling d) Cross-selling, re-selling e) Re-selling, additional selling

b) Bundling, cross-selling

75. _____ systems provide interactive communication with the customer throughout the organization. a) CRM b) Collaborative CRM c) Operational CRM d) Analytical CRM e) Transactional CRM

b) Collaborative CRM

2. A(n) _____ is software that helps companies acquire and retain customers. a) enterprise resource planning system b) customer relationship management system c) supply chain management system d) transaction processing system e) functional area information system

b) Customer relationship management system

11. A check-in kiosk at the airport would be what type of CRM application? a) Inbound telesales b) Customer touching c) Outbound telesales d) Sales e) Customer facing

b) Customer touching

21. Which of the following statements is not true? a) Customer relationship management is an organizational strategy that is customer-focused and customer-driven. b) Customer relationship management is a way of thinking and acting in a customer-centric fashion. c) Customer relationship management represents a major break with personal marketing. d) Customer relationship management helps companies acquire new customers and retain existing profitable customers.

c) Customer relationship management represents a major break with personal marketing.

79._____ includes those areas where customers directly interact with the company. a) CRM b) Analytical CRM c) Customer-facing CRM d) Customer-touching CRM e) Transactional CRM

c) Customer-facing CRM

9. _____ includes those areas where customers directly interact with the company. a) CRM b) Analytical CRM c) Customer-facing CRM d) Customer-touching CRM e) Transactional CRM

c) Customer-facing CRM

95._____ are simple tools for answering repetitive customer questions. a) Personalized Web pages b) Customized products and services c) Frequently asked questions d) E-mail systems e) Automated Section reference 1 systems

c) Frequently asked questions

19. Customer relationship management software a) Is rarely used in large organizations because these organizations have too many different types of customers with diverse tastes and preferences. b) Tracks data on activities such as products manufactured, services sold, people hired, and payroll checks generated. c) Manages e-mail distribution, scheduling, billing, and customer information. d) None of these are correct.

c) Manages e-mail distribution, scheduling, billing, and customer information.

15. The benefits of open-source CRM include all of the following except: a) it is easy to customize b) it is favorably priced c) it has more functionality than in-house CRM systems d) updates and error fixes occur rapidly e) it has extensive support information available

c) it has more functionality than in-house CRM systems

29. Customer relationship management is important to organizations because a) In an Internet-based marketplace, it is very easy for customers to move to a competitor. b) Maintaining positive relationships with customers creates value for the organization. c) Data about customers can be located in different functional areas such as accounting and logistics. d) All of these.

d) All of these

26. Customer touch points include a) Actual physical interactions with customers that take place in a store. b) Store visits, direct mailings, and telephone calls. c) Internet-based activities such as e-mail, Web sites, and Twitter. d) All of these are touch points.

d) All of these are touch points.

32. Customer-facing applications are operational CRM systems that can a) Automate service requests, complaints, product returns, and requests for information. b) Automatically record all of the components in a sales transaction process, including all contacts made with a customer. c) Enable marketers to identify the best customers, manage marketing campaigns, and generate leads for the sales team. d) All of these.

d) All of these.

36. Analytical customer relationship management systems provide information for a) Designing and executing targeted marketing campaigns. b) Product development. c) Financial forecasting and customer profitability analysis. d) All of these.

d) All of these.

101. _____ is a CRM system that is hosted by an external vendor in the vendor's data center. a) Mobile CRM b) Analytical CRM c) Operational CRM d) On-demand CRM e) Customer-facing CRM

d) On-demand CRM

14. _____ is a CRM system that is hosted by an external vendor in the vendor's data center. a) Mobile CRM b) Analytical CRM c) Operational CRM d) On-demand CRM e) Customer-facing CRM

d) On-demand CRM

10. _____ is the component of an operational CRM system that automatically records all the aspects in a sales transaction process. a) Inbound telesales b) Outbound telesales c) Sales team efforts d) Sales force automation e) The customer help desk

d) Sales force automation

85. _____ is the component of an operational CRM system that automatically records all the aspects in a sales transaction process. a) Inbound telesales b) Outbound telesales c) Sales team efforts d) Sales force automation e) The customer help desk

d) Sales force automation

96. Which of the following statements about loyalty programs is false? a) Loyalty programs work when there is a high frequency of repeat purchases. b) Loyalty programs work when there is little personal customization. c) The purpose of loyalty programs is to influence future behavior. d) The purpose of loyalty programs is to reward past behavior e) Loyalty programs are a customer-touching application.

d) The purpose of loyalty programs is to reward past behavior

70. Which of the following best describes CRM? a) a process b) a set of technologies c) an information system d) a way of thinking and acting e) a set of decisions

d) a way of thinking and acting

81. When customers help themselves, often through electronic touch points, this process is called: a) CRM b) analytical CRM c) customer-facing CRM d) customer-touching CRM e) Transactional CRM

d) customer-touching CRM

83. In _____, company representatives use multiple communication channels to support their customers' communications preferences. a) telesales rooms b) group decision support rooms c) videoconferencing centers d) sales team meetings e) customer interaction centers

e) customer interaction centers

72. Which of the following is not a customer touch point? a) telephone contact b) e-mail c) Web sites d) customer visits to a store e) none of the above - all are touch points

e) none of the above - all are touch points