chapter 12

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 A. lifetime value analysis. B. customer segmentation analysis. C. predictive modeling. D. demographic value analysis. E. recency-frequency-monetary analysis.

a

A manufacturer of kitchen cabinets relies on timely delivery from its wood supplier in order to produce its products. The company would like to have its shipment of wood delivered all at once, but it often comes in multiple shipments. While this is not usually a problem and the manufacturer is generally happy with its supplier, it has found another supplier that will deliver the wood in one shipment. Because of this, the manufacturer has decided to switch suppliers. This is an example of how A. meeting a customer's expectations doesn't always lead to brand loyalty. B. relationship marketing is not effective at building brand loyalty. C. unreasonable demands by a customer can lead to loss of sales. D. the marketing concept does not work in all situations. E. it is impossible for a company to achieve a perfect order rate.

a

According to your text, empowerment programs have the benefit of A. fostering employee satisfaction. B. reducing delivery delays. C. increasing brand recognition. D. increasing production efficiency. E. eliminating customer service departments.

a

According to your text, the ultimate goal of achieving customer satisfaction is A. to promote brand loyalty. B. to attract new customers. C. to increase brand recognition. D. to widen the target market. E. to reduce consumer complaints.

a

According to your text, what should companies do to guard against a breach of security in their CRM systems? A. Install powerful firewalls to protect customer data. B. Rely on government laws to catch hackers. C. Only allow CRM data to be shared with company affiliates. D. Rely on cloud computing applications instead. E. Store credit card numbers only for the purpose of customer orders.

a

Firms that establish effective inventory management policies, perform accurate sales forecasts, and maintain effective transportation and distribution operations are adhering to the customer service objective of A. reliability. B. timeliness. C. order. D. ease of doing business. E. consistency.

a

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 mining. B. predictive modeling. C. data warehousing. D. trend modeling. E. data trending.

a

Janie ordered a boxed DVD set online for her friend's birthday and she is hoping it will arrive on time. Luckily, the company sent her the UPS tracking number of the package so Janie can track the package and know exactly when it will arrive. This form of customer communication is referred to as A. order status communication. B. dispatch communication. C. order authorization communication. D. product fulfillment communication. E. delivery status communication.

a

Placing an order for a product on a company's web page is a(n) _______ method for direct customer interaction. A. mechanical B. human C. internal D. external E. secondary

a

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. cognitive dissonance. B. postpurchase stress. C. indecisiveness. D. purchase anxiety. E. consumer apprehension.

a

The ability of a company to deliver a good or service by the time the customer expects to have it available for sale or consumption is referred to as A. timeliness. B. reliability. C. order. D. ease of doing business. E. consistency.

a

Trisha works in an upscale department store. She has been instructed by the management staff that she can take up to 20% off a product if it appears damaged in some way. In addition, Trisha is encouraged to help customers as she sees fit, including giving customers discount coupons on future purchases if they return a product because they weren't satisfied. The management at Trisha's store is practicing A. empowerment. B. employee equity. C. standardization. D. quality control. E. relationship management.

a

What metric measures the percentage of the total number of items on the order that the firm shipped on time? A. item fill rate B. accuracy rate C. fill rate D. perfect order rate E. on-time delivery rate

a

When a firm measures the accuracy and timeliness of the information fed back to a customer concerning product availability and delivery dates, it is measuring customer communication at what point? A. pre-transaction point B. transaction point C. order fill point D. delivery point E. post-transaction point

a

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. lifetime value analysis B. customer segmentation analysis C. predictive modeling D. demographic value analysis E. recency-frequency-monetary analysis

a

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. sales personnel B. sweepstakes entries C. e-mails to customer service D. Facebook and Twitter postings E. competitor sales data

a

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. gathering specific customer information B. understanding how customers interact C. storing and analyzing information D. identifying current customers E. utilizing analysis to build customer relationships

b

A firm's flexibility is measured by which metric? A. order cycle time B. responsiveness C. perfect order rate D. on-time delivery E. fill rate

b

According to your text, which of the following is a major part of ease of doing business? A. reliability B. convenience C. profitability D. fairness E. dependability

b

All of the activities a firm engages in to satisfy the needs and wants of its customers is referred to as A. relationship management. B. customer service. C. touch points. D. customer communication. E. customer satisfaction.

b

An order has a total of 368 items (worth $23,000) and the firm ships 354 of the items (worth $21,000) on time. What is the dollar fill rate? A. 86 percent B. 91 percent C. 83 percent D. 95 percent E. 96 percent

b

Companies can assess if they are doing a good job servicing their customers by establishing performance measurements, also known as A. benchmarks. B. metrics. C. evaluators. D. touch points. E. qualifiers.

b

Direct marketing is also referred to as A. primary marketing. B. one-to-one marketing. C. client marketing. D. business-customer marketing. E. specialized marketing.

b

The customer relationship management process is described in your text as being A. linear. B. iterative. C. singular. D. finite. E. precise.

b

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. customer segmentation analysis. C. predictive modeling. D. demographic value analysis. E. recency-frequency analysis.

b

The last step of the customer relationship management process is to A. identify current customers. B. utilize analysis to build customer relationships. C. understand how customers interact. D. gather specific customer information. E. store and analyze information.

b

The 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 is referred to as A. the business action plan. B. the marketing concept. C. the management concept. D. customer service. E. customer relationship management.

b

The measure of the quantity of purchase dollars each customer spends on the company's products is referred to as share of A. market. B. customer. C. wallet. D. equity. E. product.

b

The metric that measures the ability of the order system to react to customer orders is the A. perfect order rate. B. order cycle time. C. on-time delivery. D. item fill rate. E. accuracy rate.

b

The perceived benefits, both monetary and nonmonetary, that a customer receives from a product compared to the cost associated with obtaining it is referred to as A. customer equity. B. customer value. C. share of customer. D. ease of doing business. E. relationship marketing.

b

What is the customer service objective that involves ensuring customers can depend on receiving a good or service within a stated lead time and that there will be no problems with the order? A. timeliness B. reliability C. order D. ease of doing business E. consistency

b

What metric measures the value of goods shipped on time versus the total value of the order? A. total fill rate B. dollar fill rate C. line fill rate D. profitability ratio E. on-time delivery ratio

b

Which of the following metrics judges the reliability of the order system, and determines that the failure to meet all of its requirements results in a score of zero? A. on-time delivery B. perfect order rate C. line fill rate D. item fill rate E. dollar fill rate

b

Which of the following would NOT promote ease of doing business? A. A salesperson on the store floor can place an order for a customer and have the item delivered to the customer's home. B. A retail store does not have dressing rooms so customers often have to return items that don't fit back to the store. C. A company's website offers customers the ability to chat live with a customer service representative. D. A business offers its customers favorable payment terms and discounts for quick payments. E. A department store has a no hassle return policy and allows customers to return items without a receipt.

b

A business has a large customer base each with specific needs. In order to improve customer satisfaction and loyalty, the best approach to use to interact with its customers is a A. one-size fits all marketing approach. B. universal marketing approach. C. direct marketing approach. D. generalized marketing approach. E. wide-ranging marketing approach.

c

A consumer can be happy with a product but switch to another company's good or service if it can provide additional value. This is why, according to your text, customer-driven companies strive to ________ their customers. A. satisfy B. accurately target C. delight D. pacify E. motivate

c

CRM technologies allow marketers to do all the following EXCEPT A. track consumer behavior over time. B. capture data allowing the firm to identify potentially profitable customers. C. adopt a broad approach focusing on the needs of the entire market. D. interact with customers to learn what they need and want. E. take the information gathered and tailor goods accordingly.

c

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. C. share of customer. D. customer equity. E. product equity.

c

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? A. lifetime value analysis B. customer segmentation analysis C. predictive modeling D. demographic value analysis E. recency-frequency-monetary analysis

c

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. sell additional products. B. increase consumer equity. C. reduce cognitive dissonance. D. increase ease of doing business. E. assess the customer's lifetime value.

c

The concept of empowerment means A. a company strives to deliver a good or service by the time a customer expects to have it available for sale or consumption. B. a firm is willing to have direct communication with its customer. C. a company allows its employees to make decisions and take action on their own to help customers. D. a customer does not have to put forth much effort to have a positive experience with a firm. E. a firm is willing to provide fast service, answer customer inquiries, and resolve problems in a timely manner.

c

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. C. predictive modeling. D. demographic value analysis. E. recency-frequency-monetary analysis.

c

The function that takes in orders, checks stock for availability, and prints tickets for warehouse workers to reference as they select products from warehouse locations occurs during which stage of the order cycle? A. placing order B. acknowledging order C. processing order D. filling order E. delivering order

c

The measurement of how well a CRM program prioritizes customers based on each customer's profitability is referred to as A. share of customer. B. lifetime value. C. customer focus. D. customer equity. E. dollar fill rate.

c

The performance measurement known as line fill rate measures A. the percentage of an order shipped on time and complete. B. the percentage of the total number of items on the order that the firm shipped on time. C. the percentage of item stocking types on the order shipped on time and complete. D. the value of goods shipped on time versus the line item value of the order. E. the value of the line items that have shipped on time.

c

The performance measurement that calculates the percentage of an order shipped on time and complete is called the A. item fill rate. B. accuracy rate. C. fill rate. D. perfect order rate. E. on-time delivery rate.

c

The process that involves the computerized search for meaningful trends in a large amount of data is known as A. data warehousing. B. predictive modeling. C. data mining. D. trend modeling. E. data trending.

c

The two methods that encompass customer service activities are A. face-to-face and over-the-phone. B. internal and external. C. human and mechanical. D. customer-initiated and company-initiated. E. immediate and long-term.

c

What issue highlighted in your text is an ever-present concern for customers regarding CRM systems? A. the attempt by companies to sell customers additional products B. the potential for customers to be inundated with company mail C. the worry that customer data is not secure D. the fear that the company will use customer data in its advertising campaigns E. the attempt by companies to use customer data to generate product specific promotions

c

Which of the following companies is utilizing social media in customer service? A. A company's website has a section where customers can e-mail questions. B. A retail store has a box on the check-out counter where customers can leave comments and suggestions. C. A company encourages customers to use its Facebook page to ask questions or request product samples. D. A business e-mails customers order tracking information so they can track the delivery of their orders. E. A company institutes a 24-hour customer service hotline for customers to call with questions.

c

Which of the following is NOT true regarding the application of a marketing concept? A. A marketing concept should encompass managerial awareness and appreciation of the consumer's role in the firm's existence. B. In a marketing concept, there should be general managerial appreciation of the role of marketing intelligence in determining the needs and wants of customers. C. In a marketing concept it is not necessary for all areas of a firm to be customer oriented, but it is absolutely necessary for sales and marketing to be so. D. Companies that base their business on the marketing concept maintain a focus on delivering value to the customer in any profitable way they can. E. A marketing concept puts the customer in the center of a firm's thinking in terms of both strategy and operations.

c

Which performance metric measures how many shipments are delivered per the requested delivery date? A. perfect order rate B. fill rate C. on-time delivery D. item fill rate E. order cycle time

c

A company can determine the value of its CRM program by calculating its A. share of customer ratio. B. lifetime value ratio. C. customer focus ratio. D. customer equity ratio. E. dollar fill rate.

d

A company's emphasis on customer satisfaction develops as a consequence of a A. product orientation. B. service orientation. C. sales orientation. D. customer orientation. E. competitor orientation.

d

According to your text, the ultimate goal of delivering superior customer service is to A. increase brand recognition. B. decrease product returns. C. decrease customer complaints. D. increase brand loyalty. E. increase the target market.

d

Any point at which a customer and the company come into contact is called a A. marketing point. B. sales point. C. value point. D. touch point. E. communication point.

d

The first step in the customer relationship management process is to A. gather specific customer information. B. understand how customers interact. C. store and analyze information. D. identify current customers. E. utilize analysis to build customer relationships.

d

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. share of customer. B. lifetime value. C. customer focus. D. customer equity. E. dollar fill rate.

d

The total amount of time companies use to take a customer order and deliver goods to a customer is referred to as the A. purchase process. B. sales cycle. C. transaction route. D. order cycle. E. procurement process.

d

The type of customer communication that provides the customer with information concerning the completeness of the order, when it will ship from the firm, and when it will arrive to the customer is called A. product fulfillment communication. B. dispatch communication. C. order authorization communication. D. order status communication. E. delivery status communication.

d

When a business allows employees to make decisions about how service is provided to customers it is practicing A. quality control. B. employee equity. C. standardization. D. empowerment. E. relationship management.

d

When companies meet the needs and expectations customers have for their goods or services, they have achieved A. positive word-of-mouth. B. customer equity. C. positive share of customer. D. customer satisfaction. E. ease of doing business.

d

Which of the following can be said regarding customer service? A. Good customer service is not necessary for B2B transactions. B. Research suggests that it takes more money to keep a current customer than to acquire a new one. C. Customers are getting used to poor customer service and it doesn't bother them that much. D. Good customer service alone doesn't necessarily make customers happy. E. Only large companies that deal with many customers need to worry about good customer service.

d

Which of the following is NOT a requirement necessary to constitute a perfect order? A. It must be delivered on the correct due date. B. It must be billed correctly. C. It must be delivered to the right place. D. It must include return packaging material in case the product is damaged. E. It must be delivered with the right items in the right quantities.

d

A company that tracks customers' shopping patterns and then sends them sales offers that complement their previous purchases is engaged in A. target market segmentation. B. lifetime value marketing. C. customer segmentation analysis. D. share of customer management. E. customer relationship management.

e

A company uses a software program to capture and analyze consumer data to create and maintain customer profiles, including buying habits and purchasing patterns. It then uses this information to design individualized fulfillment strategies for its customers. The company is most likely engaged in A. target market segmentation. B. lifetime value marketing. C. customer segmentation analysis. D. share of customer management. E. customer relationship management.

e

A critical element to performance measurement metrics is A. employee input. B. production efficiency. C. employee training. D. CRM programs. E. customer input.

e

A firm that uses CRM data to generate coupons for customers based on their past purchases is using the CRM data to A. reduce cognitive dissonance. B. reduce order cycle time. C. understand how customers interact. D. build customer equity. E. tailor customer promotions.

e

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? A. lifetime value analysis B. customer segmentation analysis C. predictive modeling D. demographic value analysis E. recency-frequency-monetary analysis

e

An order has a total of 625 items (worth $17,000) and the firm ships 545 of the items (worth $13,000) on time. What is the item fill rate? A. 80 percent B. 76 percent C. 32 percent D. 85 percent E. 87 percent

e

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 A. relationship marketing. B. lifetime value marketing. C. customer segmentation analysis. D. share of customer. E. customer relationship management.

e

The term ease of doing business refers to A. the ease with which a business can secure financing to start operating its business. B. how complicated the process is for producing and delivering a product. C. the ease with which a product can be promoted effectively. D. how quickly a firm can recoup its costs and begin making a profit. E. the amount of effort required on the part of a customer when dealing with a firm.

e

The term used to describe a business that focuses on attracting, maintaining, and enhancing customer relationships in order to build brand loyalty is A. customer relationship management. B. ease of doing business. C. marketing concept. D. customer segmentation analysis. E. relationship marketing.

e

Which of the following companies most likely has a philosophy that elevates customer service to the highest level? A. a company that allows customers to request a shipping label to return a product B. a company that would rather have customers go to the customer service department than let salespeople handle complaints C. a company that allows items purchased online to be returned within 10 days D. a company whose website shows the product offering, but doesn't allow customers to purchase items online E. a company that institutes a no-hassle, no time-limit return policy

e

Which of the following is NOT a common objective listed in your text for all employees when building an effective customer service strategy? A. timeliness B. reliability C. customer communication D. ease of doing business E. profitability

e