Customer Relations in Business

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Examples of customer-specific behaviors include all of the following EXCEPT:

A marketing copywriter develops a brochure aimed toward 30-something suburban mothers and mails it out to all who fit that specific profile

The following are best practices for loyalty programs EXCEPT:

Always err on the side of customer privacy over customer insight

Customer relationship management (CRM) is best characterized as:

An enterprise-wide strategy

Which of the following is true?

An interconnected world both requires and produces trust.

According to Stephen M.R. Covey, trust includes:

Character and competence

Competitive advantage in using customer information means outperforming rivals in each of the following steps except:

Collaborating

The two kinds of customization that provide the greatest competitive advantage are:

Collaborative and transparent

For "Interactive Age" companies, competitive advantage is primarily based on:

Customer information

Which of the following questions is NOT a Golden Question?

Do you eat out at restaurants more than once a week?

The document governing privacy protection in Europe is:

European Union Data Protection Directive

According to Philip Kotler, the following shifts have occurred as companies move from mass marketing to customer-focused marketing EXCEPT:

From direct contact with end users to reliance on efficient intermediaries

The four levels of business relationships are:

Intimate, face-to-face, distant, and no-contact

Which of the following statements is true about using satisfaction as a proxy for measuring loyalty?

Loyal customers are likely to be satisfied, but not all satisfied customers will be loyal.

The greatest competitive advantage in managing employees in a customer-strategy organization lies in:

Making the most talented employees more productive.

The natural buy-in phase for management seeking the best value is:

On Main Street

Using Legos as an example, which of the following would be a product benefit?

Recognizable make-believe situations

The second stage in the evolution of CRM software is:

SaaS CRM

In Charles Green's trust equation, the element that outweighs all the others is:

Self-Orientation

Which of the following describes a customer-share strategy?

Selling as many products as possible to one customer at a time

Analytical CRM includes the following:

Software installations

____________ allows companies to treat different customers differently.

The feedback loop

What should be the primary goal of frequency marketing programs?

To accumulate customer information by encouraging purchasers to identify themselves

A business relationship is mutual, interactive, iterative, and _________.

Unique

The 1-9-90 dynamic is most akin to:

a power law distribution

The goal of value differentiation is:

a predictive plan of action

Which is the most relevant customer strategy for research & development?

accessing real-time customer information

The authors predict the next stage of customer analytics will involve:

applying financial characteristics to data analysis

For the customer service department, when considering self-service options for customers, what is the best approach?

balancing CSR contact and self-service

Creating maximum customer value requires:

balancing short-term value with long-term value

"Benefits" differ from "needs" in that:

benefits are based on the product

Which of the following companies would benefit least from creating value streams?

bookseller

When listening to customer conversations online, the primary things to monitor are:

brand and customer

The picket fence strategy is best suited for:

businesses who already identify customers individually and differentiate them by value

Segment management is best suited for:

businesses who do not yet identify or differentiate their customers individually

Preparing customer data for analysis (the analysis process) includes which of the following steps?

classification, estimation, regression, prediction, and clustering

According to Paul Greenberg, which business model best takes into account the phenomenon of "social customers"?

collaboration

One tool that helps leverage community knowledge is:

collaborative filtering

In the interactive age, ___________ drives the central engine of competition.

customer information

RFM (recency, frequency, and monetary value) is a useful proxy for:

customer lifetime value

The difference between what customers want and what they're willing to settle for is:

customer sacrifice

Value harvesters are companies whose:

customer value rate is below their cost of capital

Which of the following characterizes mass customization (vs. mass production)?

demand chain management

The blogs that draw the most readers tend to have all of the following characteristics except:

employees that mostly post about products

According to Marijo Puleo, a customer-strategy organization's first investment should be in:

establishing a customer-centric vision

The primary goal of marketing in the context of interaction is:

generating feedback from the customer

A customer's value to the enterprise is a function of the profit the customer generates:

in the future

Social media has resulted in all of the following except:

increased capacity to deceive

Gupta and Lehmann's customer equity study showed that customer equity was measurably impacted most by:

increasing customer retention rates

All of the following are factors in defining customer equity except:

increasing service costs per customer

The two categories of business concerns about privacy are:

individual privacy and data security

What technique helps customization reduce a company's all-in costs?

modularization

Which of the following is NOT a likely financial benefit of using social media?

more influence in offline referrals, leading to more deal closings

According to Seth Godin, the most valuable commodity is:

permission marketing takes advantage of new technology better than interruption marketing

A customer-based enterprise must learn to balance both privacy and:

personalization

All of the following agreements would likely ease the sales department's transition except:

phasing out the use of sales force automation software

The three different dimensions of a customer's experience include:

physical, emotional, logical

The value a customer could create for the enterprise, if the enterprise made the right offerings at the right time, is:

potential value

Customer analytics provides what missing link for understanding customers?

prediction

Customer equity includes the LTV of:

present and future customers

According to the case study presented in Chapter 12, Verizon Wireless discovered which of the following benefits from customer analytics?

reduced marketing costs

Legacy metrics include all of the following EXCEPT:

return on customer

The metric that measures how well an enterprise is using customers to create short-term and long-term value is:

return on customer

One of the challenges in a sales department's transition to customer strategy is:

sales reps' work becomes more visible

The following are examples of addressable media EXCEPT:

television

A customer's contributions to an enterprise could include the following except:

using an online service rather than a call center

Which of the following actions are NOT likely to increase customer trust?

using an opt-out policy

The two fundamental differences between customers are:

value and needs

"Customer needs" are best defined as what the customer:

wants or prefers from the company

The average percentage of users who participate in an online community is:

10%

On average, an American shopper has to choose among _______ times as many products as he actually buys.

100

All of the following represent lifestyle changes relevant to predicting LTV change except:

A customer signs up for an e-mail newsletter.

Which of the following best expresses the role of emotion in business relationships, as described by the authors?

A relationship does not always have an emotional connection, and an emotional connection does not always indicate a relationship

Attitudinal data is:

Adaptive data

Keeping long-term customers is more beneficial than continually acquiring new customers because:

All that is listed

The core benefit of Learning Relationship for an enterprise is:

All that is listed

According to Jim Barnes, the following quality does NOT define a genuine business relationship:

Behavior

The primary objective of the IDIC process is:

Building a customer's trust

Which of the following are NOT identification tasks?

Collaborate

Creating a customized product for a customer through dialogue with that customer is known as:

Collaborative customization

Which stage in the relationship development process depends on the factors of inputs, consistency, and durability?

Commitment

Which of the following relationship building blocks are considered to be the two primary?

Commitment and trust

Which statement is true about opt-in and opt-out policies?

Consumer groups favor opt-in, while industry groups favor opt-out.

One way to summarize the seemingly contradictory data about consumer privacy attitudes is:

Consumers want both maximum convenience and maximum privacy.

For management seeking to fix a broken, mission-critical business process, the natural buy-in phase for new technologies is:

Crossing the Chasm

One primary economic asset of an enterprise is:

Customer information

Which of the following statements is not true about customer needs?

Customer portfolios are the best way to differentiate by needs.

According to the Pareto principle:

Customer value is best represented by a log-normal distribution curve.

The fourth implementation task in the IDIC implementation model is:

Customize

Establishing a trusting relationship in which a customer freely shares information with an enterprise will likely involve all of the following approaches EXCEPT:

Ensuring the customer database is updated at least weekly

The 5 Es of customer relationship are:

Environment, expectations, emotions, experience, engagement

Which customization activities would most likely increase a customer's long-term value?

Expanding the need set

Which stage in the relationship development process is the most fragile?

Expansion

The highest level of consciousness in the development of the organization is:

External cohesion

According to Rashi Glazer, smart markets are blurring boundaries between:

Firm and competitor

What are some reasons companies do become customer-centric?

Focusing on customers will ensure every transaction is profitable

The customer-centric company would gather customer information by:

Gathering customer-specific information AND aggregate information

Traditional marketing's "Four Ps" apply to which part of the "Get, Keep, and Grow" customer strategy?

Get

In the "relational" type of business relationship described by Julie Edell Britton, which best characterizes the interest of buyer and seller, respectively?

High and high

The core benefit of a Learning Relationship for a customer is:

Higher quality products

The "action" aspect of the IDIC model includes:

Interact and Customize

Barnes suggests a company evaluate a customer's experience on each of the following levels except:

Likelihood to refer to others

For a B2B company, what method would likely NOT help identify end users?

Linking all customer data across departments, particularly for front-line employees

The mass production of goods and services in lot sizes of one is known as:

Mass customization and Mass configuration

Which statement best characterizes the relationship between needs, behavior, and customer value?

Needs drive behavior, and behavior drives value.

Which of the following would be a reliability enhancer?

Never asking a customer to input an ID number if he will be asked for it again later in the call

Which of the following is not a "trust myth" described by Charles Green

People like to be listened to

Which of the following conditions have not contributed to more companies seeking to become trusted agents for their customers?

Personalization

For "Industrial Age" companies, competitive advantage is primarily based on:

Product innovation and brands

In customer-strategy companies, capabilities managers are most akin to:

Product managers

If an enterprise ranked low in tailoring for customers but high in customer interaction, it would find itself in which quadrant of Peppers and Rogers' Enterprise Strategy Map?

Quadrant III: Database Marketing

Which of the following aspects would be part of a customer's enhanced need set?

Related products or services

What is the biggest obstacle for most companies making the transition to becoming a customer-strategy enterprise?

Relationship governance

In the behavioral definition of customer loyalty, customer loyalty ________ brand preference.

Results from

Which of the following industries would have the most difficulty differentiating customers by needs?

Software designers

The following are reasons some companies have resisted becoming customer-centric except:

Some believe that customers are scarce

The organization that endorses each customer's control of his own information and identifies groups and companies that meet its privacy protection requirements is:

TRUSTe

An enterprise's best first step to identifying customers is:

Take an inventory of all customer data available in any electronic format

Which of the following companies would most likely have the easiest time recognizing customers at every interaction?

Telecommunications companies

Which of the following are NOT true of a company engaged in genuine dialogue with a customer?

The customer should control the dialogue.

Which of the following are one of the computer's "three awesome powers," as identified by Stan Rapp?

The power to compare

Internally generated data would include:

Transactional data

A trusted agent does all of the following except:

Understands that customer information is a primary economic asset and will use that information to ensure maximum profitability for the company

According to Dov Seidman, all of the following are true about rules except:

We feel strongly about rules.

All of the following are key questions for a company transitioning to a customer-strategy enterprise except:

What authority will the chief executive have to change how the enterprise treats customers individually?

The performance of the truly outstanding companies is characterized by:

a series of short-term competitive advantages

All of the following are ways a customer-strategy enterprise might meet the goal of maximizing the customer base except:

acquiring as many new customers as possible

Illustrating the importance of the customer as financial asset, Amazon's Jeff Bezos has said that he prioritizes spending on all of the following except:

advertising

In the transition to a customer-strategy enterprise, the human resources department plays all of the following roles except:

aligning technology implementation with business strategy

Complaining customers are valuable to a company because of their:

all that is included

Failing to align supply-chain management with demand-chain management results in:

all that is listed

Which of the following could be considered a company's customers?

all that is listed

According to Eric Beinhocker, the economy is best characterized as:

an evolutionary system

Requiring a customer to do something beneficial for the company, and then rewarding the customer for that action, is:

an implicit bargain

According to Seth Godin, the most valuable commodity is:

attention

For those building the value of the customer base in a company, privacy means all of the following EXCEPT:

avoiding litigation

An effective Future State Touchmap takes into account all of the "best practices" EXCEPT:

collecting as much customer information as possible

According to George Day, two approaches to gaining a relationship advantage include:

comprehensive solution management and customer relationship management

Another term for contributing to open source projects is:

crowd service

From the enterprise's perspective, unrealized potential value depends upon all of the following except:

current product or service usage

One new function of the transitioning customer-strategy marketing department is:

customer analytics

Losing a customer's business due to circumstances beyond a company's control is referred to as:

customer attrition

What primarily drives the success of mass customization?

customer collaboration

The net present value of the expected future stream of financial contributions for the customer is:

customer lifetime value

From the customer's perspective, potential value depends upon:

customer need

The core structure of the customer management organization is:

customer portfolio management

Customer relationship managers will be directly responsible for:

customer portfolios

The purpose of customer analytics is:

develop a deeper relationship with the customer

Creating a "front door" for a company's Web site is an example of:

differentiating customers by needs

According to the authors, the metaphor of "data mining" captures all of the following EXCEPT:

discovering real-time insights into the nature of individual customers

Companies that maintain their innovative edge find a balance between:

exploration and exploitation

Transitioning to a customer-strategy organization is best done:

gradually

An effective Current State Touchmap includes all of the following aspects EXCEPT:

graphical illustration of the enterprise's internal structure

Businesses that benefit most from community knowledge:

have routine interactive communications with customers

All of the following behaviors should characterize customer relationship managers except:

keeping departmental boundaries intact while generating enterprise-wide results

According to Pelin Turunc, the pharmaceutical industry discovered high referral value in:

key opinion leaders

Pilot projects are ideal for:

large businesses

The customer experience dimension addressed by a Touchmap is:

logical

A group of customers with similar attributes is a:

market segment

Customers create long-term value because they have __________ .

memories

Which of the following types of customer profiles would help a company define a customer's needs?

need-based

The dialogue information of most interest to a company pertains to a customer's:

needs and potential value

All of the following are points to consider in creating a privacy pledge EXCEPT:

none that is listed

To best leverage information about a customer's needs, the next step after accumulating information about the customer is:

organizing and analyzing the information

Extensive surveys indicate that people's single most trusted source is:

peers

Traditional measures of financial success emphasize:

prioritizing short-term value over long-term value

Which of the following have increased the importance of trust in today's marketplace?

privacy policies

"Dirty" data can mean all of the following except:

private

The demand chain includes all of the following except:

production

According to the authors, what common interest do enterprises and customers now share in the context of privacy?

protecting customer information

An enterprise seeking to create an online community to encourage crowd service would likely do all of the following EXCEPT:

provide economic rewards for participating

Customer interaction is the responsibility of:

sales, marketing, customer service, and upper management

When recruiting super-users, the most effective rewards will be:

social and free products

The customer-strategy enterprise will focus on growing the following customer value categories:

super-growth customers and MGC

The actual economic value of any business enterprise can measured in terms of:

the discounted net present value of the future stream of cash flow

Which of the following reasons help explain why companies tend to focus on short-term performance?

the investment community's obsession with short-term performance and companies feel powerless to change

What two events have most significantly shaped current Western attitudes toward privacy?

the rise of social media and the 9/11 terrorist attacks

In a customer-strategy enterprise, what is the primary reason to use social media?

to build customer relationships

Once we identify customers, a customer-strategy enterprise will differentiate them in order to:

treat different customers differently

Predictive modeling includes all of the following steps except:

using transactional data to calculate LTV retrospectively

What characteristic dictates most whether a company would benefit from customer analytics?

whether the company generates large amounts of customer-specific information

Needs represent the __________ behind a customer's actions.

why and how


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