Reference no: EM131471127
1. Customer relationship management (CRM):
a.is a unidirectional process.
b.aims to build a brand name.
c.is about identifying and building relationships with patrons.
d.is about developing a better rapport between managers and employees.
e.is performed for the development of new products
2. Which of the following does NOT accurately describe customer relationship management?
a.Through CRM, retailers recognize that all customers are not equally profitable.
b.Through CRM, retailers may treat certain customers differently.
c.Through CRM, retailers concentrate on providing more value to their best customers using targeted promotions.
d. Through CRM, retailers try to increase the share of wallet with all customers.
e. Through CRM, retailers provide more incentives to their best customers.
3. A customer that is loyal to a store _____.
a.is committed to purchasing from the retailer and will seldom shop at the competition
b.has a high frequency of purchasing merchandise from the retailer
c.has made a recent purchase from the retailer
d.spends 80% of their discretionary income at the retailer
e.will respond to a direct mail advertisement and shop at the store for a sale
4. The customer database:
a. is distinct from the retailing data warehouse.
b. contains only the contact information of customers.
c. does not aggregate the information of customers in a household.
d.keeps track of the spending patterns of the customers.
e.is directly linked to the payment portal to debit money for purchases.
5. The cookies used over the Internet:
a.are used to make automated payments online.
b.refer to special promotional offers for items sold through the Internet channel.
c.are used to monitor the retail outlets visited by a customer during a day.
d.are used to identify the online activities of a customer.
e. are used by retailers to keep track of the inventory.
6. In the CRM process, after constructing a customer database, the next step is to _____.
a.analyze the customer data and identify target markets
b.develop CRM programs
c.comparative shop the competition
d.implement CRM programs to make a positive impact on sales
e. adjust prices and assortments according to the customer feedback
7. Which of the following is used to improve the effectiveness of frequent-shopper programs?
a.Flattening the rewards hierarchy
b.Treating one-off shoppers like VIPs
c.Incorporating charitable activities
d.Setting static rewards
e.Rewarding only specific transactions
8. To minimize the negative impact of unprofitable customers, retailers can:
a.charge customers for the services they are abusing like a stocking fee for returned goods.
b.forbid the unprofitable customers from entering their store.
c.charge potential unprofitable customers a higher price than what the product is ticketed at.
d.implement 1-to-1 retailing.
e.implement a high pressure sales team to persuade unprofitable customers to buy more.
9. According to the customer pyramid hierarchy, which of the following is true of the platinum segment customers of a retailer?
a.Even though they buy a significant amount of merchandise from the retailer, they are equally likely to patronize some of the retailer’s competitors.
b.Their spending levels, loyalty, and profitability are not substantial enough for special treatment.
c.They make a negative contribution to the firm’s income.
d.They often buy merchandise on sale or abuse return privileges.
e.They often place more value on customer service than price.
10. 1-to-1 retailing:
a.is more likely to occur in larger retail stores.
b.is performed by stores with advanced database and mining facilities.
c.refers to the practice in which the merchandise is targeted toward a particular group.
d.improves customer loyalty.
e.places more emphasis on price than customer service.