ch 14 assigment (for final) – Flashcards
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FALSE The central message of every CRM program is to cultivate customers for more than a one-time sale
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The central message of every CRM program is "Court customers for a one-time sale." True or False?
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FALSE It costs around six times as much to acquire a new customer as it does to keep an existing one.
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It costs on average two times as much to retain a current customer as it does to acquire a new one. True or False?
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FALSE CRM software, if used properly, can help in customer retention.
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Buying or developing CRM software leads to higher customer retention. True or False?
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TRUE Customer relationship management means different things to different businesses.
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Customer relationship management means different things to different businesses. True or False?
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TRUE There must be a company-wide commitment to CRM concept if CRM is to be productive.
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There must be a company-wide commitment to CRM concept if CRM is to be productive. True or False?
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TRUE United Supermarkets LLC illustrates that a well managed company with an emphasis on customer relationships will tend to have profits.
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United Supermarkets LLC illustrates that a well managed company with an emphasis on customer relationships will tend to have profits. True or False?
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FALSE The survey reported only 22 percent of customers had experiences with companies of all sizes that they could describe as excellent.
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A CRMGuru.com study found that 88 percent of customers typically have excellent experiences with small businesses as opposed to large organizations. True or False?
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TRUE A transactional relationship is an association between a business and a customer that relates to a one-time purchase or business exchange.
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A transactional relationship is an association between a business and a customer that relates to a one-time purchase or business exchange. True or False?
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TRUE Regardless of the nature of the business, small firms can gain a competitive edge by providing exceptional customer service.
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Regardless of the nature of the business, small firms can gain a competitive edge by providing exceptional customer service. True or False?
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FALSE Doing business on a first-name basis is a common sign of extraordinary personal customer service.
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Addressing a customer by name typically means very little to them. True or False?
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FALSE While it is important to stay in touch, helping customers doesn't always lead to an immediate sale.
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It is important to keep in touch with a customer and make a sales pitch each time. True or False?
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FALSE The analysis of complaints may uncover possible weaknesses in product quality and/or customer service.
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A customer complaint can be positive. True or False?
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TRUE Long-term transactional relationships with customers are fostered by good information.
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Long-term transactional relationships with customers are fostered by good information. True or False?
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FALSE This ability has been characteristic of small businesses.
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The ability to enjoy one-on-one contact with customers has always been a competitive advantage for large firms. True or False?
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FALSE Social media will not result in the need for a company to create an online community or a blog.
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Current social media will automatically drive users to a company's website. True or False?
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FALSE The sales department typically generates the greatest amount of customer contact
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Initial CRM support efforts should be placed with the website as those personnel have the most customer contact. True or False?
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TRUE Lack of in-house expertise is a major justification for using outside CRM services.
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Lack of in-house expertise is a major justification for using outside CRM services. True or False?
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TRUE Rejuventaion Lamp and Fixture Company's use of a humorous, self-stamped questionnaire sent in customer packages is an example of how descriptive information for a customer profile can be obtained.
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Rejuventaion Lamp and Fixture Company's use of a humorous, self-stamped questionnaire sent in customer packages is an example of how descriptive information for a customer profile can be obtained. True or False?
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FALSE Customer profiles also include transactional histories, customer contact information, and if the customer responded to any marketing efforts.
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Customer profiles are limited to demographic variables such as age, gender, and marital status. True or False?
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TRUE A customer profile is a collection of information about a customer including demographic data, attitudes, preferences, and other behavioral characteristics.
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A customer profile is a collection of information about a customer including demographic data, attitudes, preferences, and other behavioral characteristics. True or False?
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TRUE When a business first begins, the first CRM database may be entrepreneurial retained knowledge as opposed to a computer program.
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When a business first begins, the first CRM database may be entrepreneurial retained knowledge as opposed to a computer program. True or False?
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FALSE Routine problems often related to conditions of depletion, i.e. the need for food, sleep or daily products.
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A consumer's recognition of a problem can be characterized as routine if the problem evolves over time. True or False?
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FALSE An evoked set is a group of brands that a consumer is both aware of and willing to consider as a solution to a purchase problem. The features or characteristics of products or services that are used to compare brands are referred to as evaluation criteria.
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Evoked sets are features or characteristics of products or services that are used to compare brands. True or False?
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TRUE Small businesses must strive to recognize cognitive dissonance among their customers and to manage it effectively.
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Small businesses must strive to recognize cognitive dissonance among their customers and to manage it effectively. True or False?
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TRUE Since most purchases from traditional retail stores are not planned or intended before a customer enters the operation, the store layout, sales personnel and point-of-purchase displays are critical for a final sale.
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Since most purchases from traditional retail stores are not planned or intended before a customer enters the operation, the store layout, sales personnel and point-of-purchase displays are critical for a final sale. True or False?
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TRUE An evoked set is a group of brands that a consumer is both aware of and willing to consider as a solution to a purchase problem.
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An evoked set is a group of brands that a consumer is both aware of and willing to consider as a solution to a purchase problem. True or False?
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TRUE It is critical for small firms to develop marketing strategies based on if the customer has (or has not) recognized a need.
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It is critical for small firms to develop marketing strategies based on if the customer has (or has not) recognized a need. True or False?
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FALSE The principal objective would be to gain market awareness to potentially be in the customer's evoked set.
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In the information search and evaluation stage, the firm's principal objective is to establish evaluative criteria. True or False?
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FALSE
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Post-purchase dissonance has been shown to be unrelated to customer satisfaction because it occurs after customers have satisfied their needs. True or False?
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TRUE Post-purchase dissonance and consumer complaints are both directly related to customer satisfaction.
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Post-purchase dissonance and consumer complaints are both directly related to customer satisfaction. True or False?
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FALSE Perceptual categorization is a process by which things that are similar are perceived as belonging together.
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An investigation of culture with a narrow definitional boundary (e.g., by age, geographic location, etc.) is called perceptual categorization. True or False?
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FALSE Attitudes directly impact behavior, acting as an obstacle or a catalyst in bringing a customer to a product.
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Attitudes have an indirect impact on consumer behavior. True or False?
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FALSE Customer needs are never completely satisfied resulting in the need for businesses.
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Consumer needs can be completely satisfied by proper customer relationship management. True or False?
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FALSE Attitudes are enduring opinions, based on knowledge, feeling, and behavioral tendency.
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Attitudes are forces that organize and give direction to the tension caused by unsatisfied needs. True or False?
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FALSE All four classes of needs can be connected to behavior: physiological, social, psychological and spiritual.
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Three classes of needs—social, psychological, and spiritual— can be connected to behavior through motivations. True or False?
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FALSE Marketers can not create needs, but they can offer unique motivation to consumers by presenting acceptable reasons for purchasing a product or service.
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Marketers create needs that offer unique motivations to consumers. True or False?
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TRUE A marketer must determine which motivations the consumer will perceive as acceptable to satisfy a need in a given situation.
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A marketer must determine which motivations the consumer will perceive as acceptable to satisfy a need in a given situation. True or False?
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FALSE While education, possessions, and sources of income do have an influence, occupation is probably the single most important determinant.
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Educational level is the most single determinant of social class. True or False?
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FALSE A reference group refers to those that which an individual allows to influence his or her behavior; group membership is not a requirement.
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Every group to which an individual belongs is a reference group for that consumer. True or False?
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TRUE In general, opinion leaders are considered to be knowledgeable, visible, and exposed to mass media.
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In general, opinion leaders are considered to be knowledgeable, visible, and exposed to mass media. True or False?
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TRUE Because culture drastically affects the behavior patterns and values of people, it has tremendous impact on the purchase and use of products.
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Because culture drastically affects the behavior patterns and values of people, it has tremendous impact on the purchase and use of products. True or False?
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Reductions in transactional relationships
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Which descriptor is not a focus of modern CRM? -Customers rather than products -Changes in processes, systems, and culture -All channels and media involved in the marketing effort -Reductions in transactional relationships
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Acquisition costs for new customers are huge.
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Economic benefits associated with maintaining relationships with current customers include? -Acquisition costs for new customers are huge. -New customers spend more money than long-time customers. -Order processing costs are lower for new customers -All of these
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be willing to pay more for Burke's Furniture's products.
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Diane is a loyal, long term customer at Burke's Furniture Store. It would be expected that she would....
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economic
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The fact that satisfied customers refer their friends and colleagues is an example of a(n) _______ benefit of maintaining relationships with current customers. -economic -marketing -psychological -social
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determining if existing customers are satisfied with past floral arrangements.
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As an owner of a floral design business, Tim's highest priority for the florist's CRM program should be
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The Golden Rule
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CRM is the business version of?
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small firms possess great potential for providing superior customer service.
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A basic idea forming the foundation of customer loyalty for small firms include the notion that
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feel more inclined to become repeat customers following a positive customer experience.
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The majority of respondents to a American Express Global Customer Service Barometer survey said they
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Question complaints
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Which suggestion is not used for developing extraordinary customer service?
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customer complaints.
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Most customer service problems are identified by
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value equation
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Molly has had repeated positive experiences with her local coffee shop. They suggest new flavors, call her by her first name, and donate to a local charity that Molly supports. Molly experiences, as a result, contribute to the firm's CRM _______.
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privately complain to the business
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Which consumer options for dealing with product or service dissatisfaction is the only one that is desirable to a business?
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customer service quotient
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To establish an effective customer service program, what should be completed first?
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customer experience management.
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An approach that recognizes that, with every interaction, customers learn something about a company that will affect their desire to do business there in the future is known as
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good information.
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Long-term transactional relationships with customers are fostered by
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Web 2.0
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A growing number of marketers are using _____ software to form relationships with customers.
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Jan starts writing her on blog for persons interested in tourism attractions near the inn.
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Jan has started a bed and breakfast inn and wants a social media presence to reach her customers. Which method would be the most effective in driving persons to the inn's website?
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outsource the call center.
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Rick, owner and developer of a sports trivia game, sells his product solely online. He wants to control the cost of his business's customer assistance but also understands he needs to have positive interactions with his customers. His options would include all of the suggestions below except
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are often implemented into marketing departments first since this area of a company typically generates the greatest amount of customer contact.
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CRM software programs
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can leave a small business and its reputation open for attack from unhappy customers.
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yelp.com
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Descriptive information
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A customer's educational level would most likely be stored in which category of a customer profile?
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Customer contacts
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Information taken from warranty cards would be stored in which category of a customer profile?
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All of these methods collect customer profile information.
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Collecting customer profile information can be completed with -accounting records from past transactions -online surveys through a company's website. -formal in-person questionnaires. -all of the above methods collect costumer info
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Responses to marketing stimuli
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To determine if an advertising campaign was successful, a business owner would evaluate which customer profile component first?
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potential motivations.
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The customer profile includes all of the following information except customer -behavioral characteristics -demographic data. -potential motivations -preferences.
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Responses to marketing stimuli
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A customer's use of a discount coupon would most likely be recorded in which category of the customer profile?
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post-purchase evaluation
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According to consumer information-processing theory, _____ is the final stage through which consumers progress.
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need recognition
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Mary, an independent sales representative, is hindered in her ability to be in contact with clients because of dropped calls on her cell phone. Her decision to purchase a cellular booster for her phone reflects Mary has just proceeded through the _____ stage of consumer decision making.
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cognitive dissonance.
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Consumer tension that occurs immediately following a purchase is referred to as
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need recognition
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Jeff has concluded that his company selling professional football merchandise needs to increase its line of shirts. He is in the ____ stage of the consumer decision making process.
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information search and evaluation
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Linda is considering several colleges at which to finish her culinary degree. She is in the _____ stage of the consumer decision making process.
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purchase decision
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When Sarah decided to make an offer on a house, this action illustrated she is in the _____ stage of the consumer decision making process.
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post-purchase evaluation
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In what stage of the consumer decision making process is Josh when he becomes concerned if the video game he downloaded will be enjoyed by his friends?
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is not included in Bob's evoked set.
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Bob never purchases bottled water when he is thirsty even if it is available. This behavior indicates that bottled water
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Having second thoughts about the purchase of an iPhone
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Which action does not cause a customer to recognize a problem and desire a change? -A job promotion -The birth of a new child in a family -Using up the last tube of toothpaste -Having second thoughts about the purchase of an iPhone
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perceptions.
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Individual processes that ultimately give meaning to stimuli that confront consumers are known as
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an attitude.
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An enduring opinion that is based on a combination of knowledge, feeling, and behavioral tendency is referred to as
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spiritual
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Attending a prayer breakfast is most likely an attempt to satisfy which category of need?
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perceptual categorization.
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Juan's belief that all low calorie sodas taste awful is an example of
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perceptual categorization.
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The reason that a group of uniformed people walking down the street playing musical instruments is recognized as a band is the result of
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attitude
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June has always believed that the resale furniture store doesn't have quality furniture as it has been used by others. This _____ may cause her to avoid the store and shop at a store specializing in new furniture across town.
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Culture
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Which influence is not psychological in nature?
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social classes.
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Divisions in society with different levels of social prestige are called
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reference groups.
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Groups that an individual allows to influence his or her behavior are known as
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referent
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Erin often shops at a retail store her friends shop at because of her desire to be affiliated with the group. The friends are exerting ______ power over Erin.
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nationally known.
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In general, a person can be an opinion leader even if he or she is not
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culture
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Julie's desire for the a certain style of barbeque developed in her state is the result of which sociological influence?
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a reference group for music lovers.
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Joe Penna, as the Mystery Guitar Man, is an example of
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opinion leaders
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A winery promotes its products by holding wine tastings at the restaurants of outstanding local chefs. The winery is utilizing which sociological influence?
