Chapter 15 Questions

Select three steps a company can use to recover from a service failure. (Check all that apply.)

-Apologize to the customer -Fix the problem and follow-up -Document the problem and find its root cause

Which of the following objectives should a company take into account when establishing its customer service policies? (Check all that apply.)

-Encourage ease of doing business -Deliver goods and services in a timely manner -Establish convenient customer communication channels -Ensure that the order process is reliable

Research indicates which of the following regarding customer service? (Check all that apply.)

-News of bad customer service reaches twice as many people as comments about good customer service. -It takes many positive experiences with a customer to make up for one negative experience a customer has.

Which of the following metrics can be used to track customer service performance? (Check all that apply.)

-On-time delivery -Perfect order rate -Dollar fill rate -Fill rate

Which of the following does a company use to assess perfect order rate? (Check all that apply.)

-Order has the right items in the right quantity -Order is delivered on the correct date -Order is not damaged -Order is delivered to the right place

Select the four basic criteria a company can use to judge the effectiveness of its CRM program. (Check all that apply.)

-Share of customer -Customer equity -Customer focus -Lifetime value

Which of the following activities are available to marketers through CRM technology? (Check all that apply.)

-Tailor goods and services according to customer needs. -Interact with customers to learn what they need and want. -Track consumers' behavior over time. -Capture data that allows the firm to identify profitable customers.

Customer service revolves around two methods of customer interaction, specifically _______. (Check all that apply.)

-human -mechanical

Which of the following accurately describes the customer relationship management process?

A company repeats the sequence of steps in the CRM process as necessary to reach the desired result.

What is the most important characteristic of the information placed into a CRM database?

Accuracy

______ filtering can filter large amounts of information in order to predict consumer preferences.

Collaborative

Jason's company has installed a software system that allows it to track customer purchases and analyze buying habits. It is Jason's job to use this data to design individualized strategies for customers, such as sending discount coupons to those who purchase more than $100 in product each month. What does Jason's company use to understand its customers needs and wants?

Customer relationship management

_______ refers to the state that is achieved when a company meets the needs and expectations its customers have for its goods and services.

Customer satisfaction

Which type of data analysis involves creating customer profiles and categorizing them?

Customer segmentation analysis

What is the greatest concern, as highlighted in your text, associated with storing customer information in a company's computer system?

Customers are worried that their information might not be secure.

Feliz is currently analyzing customer information. He has six years of information and is looking for trends—such as "Do more teens or adults buy his company's products?" Feliz is using which process to find his information?

Data mining

The warehouse manager provides a weekly report to his boss which shows the value of goods shipped on time from the warehouse versus the total value of orders received. Which metric is the warehouse manager providing?

Dollar fill rate

_________ refers to giving employees permission to make decisions and take action on their own to help a customer.

Empowerment

Jason mentioned at the management meeting that it was vital to establish customer service access through phone lines, e-mail, and retail venues, so that it was easy for customers to get answers to questions. Which of the following customer service objectives is Jason concerned with?

Establishing convenient customer communication channels

True or false: Customer relationship management is a linear process.

False

Corinne's boss has asked her to find out the age and income levels of the customers who "liked" the company's newest product offering on its Facebook page. Which step in the CRM cycle is Corinne working on?

Gather specific customer information.

Once a company understands how its customers interact with the firm, which stage of the CRM cycle can it proceed to?

Gather specific customer information.

Raphael started his online translation service six months ago. He is currently trying to figure out if most of his clients are business-related or consumer-related. Which step of the CRM process is Raphael undertaking?

Identify current customers.

_______ is a metric that measures the percentage of item types (SKUs) on the order shipped on time and complete.

Line fill rate

Which performance measure is concerned with the due date the order is to arrive at a customer's location?

On-time delivery

_________ marketing is a strategy that focuses on attracting, maintaining, and enhancing customer relationships.

Relationship

_______ is a measure of the quantity of purchase dollars each customer spends on a company's products.

Share of customer

After Kelly received her order from Macy's, she received an e-mail which directed her to a survey she could complete on Macy's Facebook page regarding the service she had received in connection with her order. What tool is Macy's using to learn about its customer service?

Social media

In the CRM cycle, what step should a company follow after it has gathered specific customer information?

Store and analyze customer information.

True or false: With the advent of social media, customers expect help immediately, at any hour of the day, and any day of the week.

True

Maria owns ten cupcake retail stores across the United States. Last year, she decided to also sell her cupcakes online. She now wants to determine if she is selling more cupcakes online or in the retail stores. Which step of the CRM process is Maria engaging in?

Understand how customers interact.

Serena buys most of her wardrobe from Macy's. She recently received an e-mail from Macy's asking her if she preferred to buy at the retail store or online. What step of the CRM cycle is Macy's engaged in when it e-mails its customers regarding their preferences?

Understand how customers interact.

A mechanism that sorts large amounts of information about many consumers' previous purchases that may be related and help predict consumer preferences is called

collaborative filtering

A company that focuses on a(n) orientation emphasizes customer satisfaction.

customer

Because it is the first step to achieving brand loyalty, companies strive to achieve .

customer satisfaction

The end result of empowerment should be _______.

customer satisfaction

analysis would be used to determine demographic characteristics and purchasing patterns.

customer segmentation

Collectively, the activities a firm engages in to satisfy the needs and wants of its customers are known as

customer service

A company that relies on the marketing concept places _______ at the center of thinking regarding strategy and operations.

customers

The end result of CRM software is to establish a mutually beneficial relationship with _______.

customers

The first step in the customer relationship management process involves identifying current _______.

customers

Companies that adopt CRM use _________ to understand customer needs and wants.

data

In order to guard against a breach in security, CRM systems must have a robust firewall in place to protect the ____ of customers

data

Once data has been stored in the customer relationship management process, a computer program can analyze the data to search for meaningful trends. These trends become the basis for building customer relationships. This analysis process is known as _______.

data mining

is a process that involves the computerized search for meaningful trends in a large amount of data.

data mining

you would use ____ ________ rate metric when measuring value of goods shipped on time vs. total value of order

dollar fill

Jessica is a server at a popular BBQ restaurant that is known for fast service. She has been instructed to provide a free dessert to any table that has to wait more than ten minutes to receive a meal. This is an example of .

empowering

Kenneth reported to the management team that 98% of orders had been shipped on time and complete in the past six months. Kenneth is reporting the .

fill rate

Jaleel wants to return the shirt he ordered because it is too small. When he went to the store, the salesperson happily accepted his return and refunded his money since the store did not have the correct size for an exchange. Jaleel has experienced _______.

good customer service

Companies strive to resolve service problems in the best way possible because customers who have had a service problem that is resolved quickly and to their satisfaction tend to be more _______ to the company

loyal

The _______ metric measures how many shipments are delivered per the requested delivery date.

on-time delivery

A company establishes metrics in order to track _______.

performance

As the head of the sales department, it is Vicki's job to maintain and enhance the relationships her company has with its customers. Vicki is involved with

relationship

If a company wants to have a better understanding of customer interactions that take place in a retail store, it should rely on _______.

sales personnel

Kaley was pleased to report to the management team that the company's CRM efforts had paid off and there was a 15% increase in the number of goods purchased by existing customers in the last six months. Kaley's company has increased its _______.

share of customer

After using CRM analysis, Carla's Coffee Corner has decided to mail coupons to customers who have purchased coffee in the last 30 days. The coffee shop is using CRM data to _______.

tailor customer promotions

When a firm targets specific customers for direct-mail advertising, it is using CRM data to _______.

tailor customer promotions

If there are any deviations in filling and shipping an order, the perfect order rate would be assessed as a(n) .

zero,failure,0