Chapter 12 Marketing Practice

Which of the following can be said regarding customer service?

Good customer service alone doesn't necessarily make customers happy.

According to your text, what should companies do to guard against a breach of security in their CRM systems?

Install powerful firewalls to protect customer data.

Which of the following is NOT a requirement necessary to constitute a perfect order?

It must include return packaging material in case the product is damaged.

The concept of empowerment means

a company allows its employees to make decisions and take action on their own to help customers.

The measure of the quantity of purchase dollars each customer spends on the company's products is referred to as share of

customer

A company can determine the value of its CRM program by calculating its

customer equity ratio

A company's emphasis on customer satisfaction develops as a consequence of a

customer orientation

When companies meet the needs and expectations customers have for their goods or services, they have achieved

customer satisfaction

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

customer segmentation analysis

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

customer value

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

data mining

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.

delight

What metric measures the value of goods shipped on time versus the total value of the order?

dollar fill rate

When a business allows employees to make decisions about how service is provided to customers it is practicing

empowerment

At the pre-transaction point, the firm measures the ability to accurately provide shipment status and track the order.

false

Companies want to capture and retain customers that will be not only loyal but also profitable, which often means targeting as many customers as possible with whom to do business.

false

Ease of doing business refers to the amount of effort it takes a firm to produce and promote a product.

false

Predictive modeling allows the company to monitor the actual costs of doing business with customers to ensure that it is focusing on the most profitable customers.

false

The broad focus of customer relationship management allows companies to spend time and money prospecting for new customers rather than trying to obtain maximum profits from customers they already have.

false

The fill rate measures the percentage of the total number of items on the order that the firm shipped on time.

false

The ultimate goal of delivering superior customer service is to increase brand recognition.

false

When customer perceptions of value differ widely, a one-size-fits-all customer service policy will be most effective at ensuring the majority of customers will become loyal customers.

false

The performance measurement that calculates the percentage of an order shipped on time and complete is called the

fill rate

What metric measures the percentage of the total number of items on the order that the firm shipped on time?

item fill rate

The customer relationship management process is described in your text as being

iterative

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

lifetime value analysis

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

meeting a customer's expectations doesn't always lead to brand loyalty.

Which performance metric measures how many shipments are delivered per the requested delivery date?

on-time delivery

Direct marketing is also referred to as

one-to-one marketing

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

order status communication

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?

pre-transaction point

Which of the following is NOT a common objective listed in your text for all employees when building an effective customer service strategy?

profitability

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

reduce cognitive dissonance

The term used to describe a business that focuses on attracting, maintaining, and enhancing customer relationships in order to build brand loyalty is

relationship marketing

A firm that uses CRM data to generate coupons for customers based on their past purchases is using the CRM data to

tailor customer promotions

The term ease of doing business refers to

the amount of effort required on the part of a customer when dealing with a firm.

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

the marketing concept

The performance measurement known as line fill rate measures

the percentage of item stocking types on the order shipped on time and complete.

Any point at which a customer and the company come into contact is called a

touch point

A company initiates the CRM process by identifying its current customers.

true

Anything a company does that directly touches the customer falls under the realm of customer service.

true

Firms develop a reputation for reliability by establishing effective inventory management policies, performing accurate sales forecasts, and maintaining effective transportation and distribution operations.

true

Firms with a customer orientation set an expectation that all employees should seek to provide value to the customer in a way that meets, or hopefully exceeds, the customer's expectations.

true

Share of customer differs from market share in that it measures the quantity of purchase dollars each customer spends on the company's products rather than the number of customers.

true

The order cycle is the total amount of time that elapses from the time a customer places an order until the time the product is delivered to the customer.

true