Chapter 21

Chapter 21Customer Relationship Management (CRM)
TRUE/FALSE
1. Customer relationship management (CRM) requires that organizations be organized around customer
segments.
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'!: AACS( Re,lecti-e hin.ing / (0" Model Customer
%. echnolog1 pla1s a ma2or role in an1 CRM s1stem.
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'!: AACS( echnolog1 / (0" Model Customer
$. 4ata consolidation is an anal1tical process that compiles actionable data about the purchase habits o, a
,irm5s current and potential customers.
ANS: #
his is data mining.
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'!: AACS( echnolog1 / (0" Model Customer / (0" Model 'nline6Computer
7. Customer*centric is an internal management philosoph1 similar to the mar.eting concept.
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'!: AACS( Re,lecti-e hin.ing / (0" Model Strateg1
8. "mpo9erment in a CRM en-ironment is normall1 a process o, collecting customer in,ormation
through customers5 ,eedbac. on products.
ANS: #
his is learning. "mpo9erment is the delegation o, authorit1 to sol-e customers: problems quic.l1.
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;. hrough the application o, .no9ledge management< the =ands5 "nd clothing catalog retailer 9ould
ha-e learned that a substantial number o, its customers 9ould li.e =ands5 "nd to o,,er a line o,
maternit1 9ear.
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>. #or a catalog retailer< the contact bet9een the customer and the compan15s order ta.er 9ould be an
e?ample o, a touch point.
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@. ouch points are an1 situations in 9hich the compan1:s emplo1ees actuall1 interact 9ith customers.
Ahen a customer places an order through the compan1 Aeb site no touch point has been created.
ANS: #
An1 contact bet9een the customer and the compan1 is considered a touch point< including contact
through the compan1Bs 9eb site.
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&. Ahen Amazon.com as.s -isitors to its Cnternet site to create 9ish lists and then in-ites them to send
the lists to people 9ho ma1 be planning on bu1ing them a present soon< it is rel1ing on Aeb*based
interactions to help it learn about its customers.
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'!: AACS( echnolog1 / (0" Model 'nline6Computer / (0" Model Customer
13. Consumers are reluctant to enter in,ormation through point*o,*sale interactions because o, pri-ac1
-iolation ,ears.
ANS: #
Man1 point*o,*sale so,t9are programs enable customers to easil1 pro-ide in,ormation about
themsel-es 9ithout ,eeling their pri-ac1 has been -iolated.
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11. Channel interactions are the relationships a manu,acturer has 9ith its distributors.
ANS: #
Channel interactions are bet9een customers and mar.eters and include store -isits< con-ersations 9ith
salespeople< and 9ireless communication.
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1%. he process o, centralizing data in a CRM s1stem is sometimes re,erred to as the interpolation o,
e?ternal and internal touch points.
ANS: #
he process o, centralizing data in a CRM s1stem is called data 9arehousing.
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1$. #or a CRM s1stem to be e,,ecti-e< customer in,ormation must be stored in a data matri?.
ANS: #
he in,ormation must be stored in a data 9arehouse< a central repositor1 ,or data ,rom -arious
,unctional areas o, the organization.
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17. !ri-ac1 issues are the primar1 reason ,or centralizing data in a CRM.
ANS: #
Customer data is centralized in a CRM s1stem not ,or pri-ac1 reasons< but to actuall1 to ma.e it
a-ailable throughout the organization.
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18. Response lists are especiall1 important in database creation because past beha-ior is a strong predictor
o, ,uture beha-ior.
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'!: AACS( Re,lecti-e hin.ing / (0" Model Customer / (0" Model 'nline6Computer
1;. 4atabase elaboration is the addition o, in,ormation to customer or prospect records ,or the purpose o,
better describing or better determining the responsi-eness o, those customers or prospects.
ANS: #
his is re,erred to as database enhancement and in-ol-es purchasing in,ormation on customers or
prospects to better describe their needs or determine ho9 responsi-e the1 might be to mar.eting
programs.
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'!: AACS( echnolog1 / (0" Model 'nline6Computer
1>. Multinational companies o,ten ,ace di,,icult problems 9hen pulling together internal data about their
customers.
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'!: AACS( echnolog1 / AACS( Cnternational !erspecti-e / (0" Model Customer
1@. 4ata mining is used to ,ind hidden patterns and relationships in the customer data stored in the data
9arehouse.
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1&. Dol-o has a Aeb site that caters to car enthusiasts 9ho might 9ant to see concept cars e-ol-e into
real*li,e products. Dol-o 9ould li.el1 ha-e used data mining to locate people 9ho 9ere car enthusiasts
and inno-ators.
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%3. R#M anal1sis is used to delete unnecessar1 or duplicated data.
ANS: #
R#M anal1sis identi,ies customers most li.el1 to purchase again.
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%1. A basic assumption in an1 li,etime -alue calculation is that mar.eting to repeat customers is more
pro,itable than mar.eting to ,irst*time bu1ers.
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%%. As a predicti-e tool< data mining has limited utilit1.
ANS: #
4ata mining has great utilit1 as a predicti-e tool.
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'!: AACS( echnolog1 / (0" Model Strateg1
%$. A common CRM application is cross*selling other products or ser-ices to customers.
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%7. hrough campaign management< all areas o, the compan1 participate in the de-elopment o, programs
targeted to customers.
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%8. he Enited States has the most restricti-e pri-ac1 la9s in the 9orld.
ANS: #
!ri-ac1 policies ,or companies in the Enited Sates are largel1 -oluntar1< and regulations on ho9
personal data are collected and used are being de-eloped. "urope has the strictest legislation regarding
the collection and use o, customer data.
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MULT!LE C"#CE
1. FFFFF is a compan1*9ide business strateg1 designed to optimize pro,itabilit1< re-enue< and customer
satis,action b1 ,ocusing on highl1 de,ined and precise customer segments.
a. 'rganizational optimization
b. Consumer relationship mar.eting (CRM)
c. otal qualit1 management (GM)
d. Customer relationship management (CRM)
e. Mar.et aggregation
ANS: 4
CRM ,ocuses on understanding customers as indi-iduals instead o, as part o, a group.
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'!: AACS( Re,lecti-e hin.ing / (0" Model Customer / (0" Model Strateg1
%. At its most ,undamental le-el< a CRM approach is no more than:
a. the relationship culti-ated b1 a salesperson 9ith a customer
b. a mass mar.eting approach
c. a transactional selling approach
d. a customer satis,action program
e. a di,,erentiation strateg1
ANS: A
#undamentall1< a CRM approach is no more than the relationship culti-ated b1 a salesperson 9ith the
customer.
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$. he M1 Co.e Re9ards program allo9s consumers to earn re9ard products and ser-ices b1 registering
points the1 recei-e b1 consuming Coca Cola products. he M1 Co.e Re9ards program allo9s Coca
Cola to collect in,ormation about consumers that the1 can use to optimize pro,itabilit1< re-enue< and
customer satis,action. he M1 Co.e Re9ards program is an e?ample o, a(n) FFFFF program.
a. organizational optimization
b. consumer relationship mar.eting (CRM
c. total qualit1 management (GM
d. customer relationship management (CRM
e. mar.et aggregation
ANS: 4
CRM is a compan1*9ide business strateg1 designed to optimize pro,itabilit1< re-enue< and customer
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7. Esing technolog1 pro-ided b1 Smart (utton so,t9are< the AN(A:s =os Angeles Spar.s ha-e
implemented a ne9 s1stem that gathers in,ormation about its best customers< season tic.et holders<
and re9ards those customers in man1 9a1s including ,ree tic.ets to Spar.s home games and cash
prizes. his is an e?ample o, a(n) FFFFF s1stem.
a. organizational optimization
b. corporate relationship mar.eting (CRM)
c. total qualit1 management (GM)
d. customer relationship management (CRM)
e. call response mar.eting (CRM)
ANS: 4
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8. o initiate the CRM c1cle< a compan1 must ,irst:
a. establish mar.eting ob2ecti-es
b. captures rele-ant customer data on interactions
c. identi,1 customer relationships 9ith the organization
d. understand the interactions the compan1 has 9ith current customers
e. 4ecides on a segmentation strateg1
ANS: C
o initiate the CRM c1cle< a compan1 must ,irst identi,1 customer relationships 9ith the organization.
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;. Ahile man1 catalog retailers send out a standard catalog to all potential customers< =and:s "nd uses
in,ormation it has gathered about customers in its CRM s1stem to target the catalog to the indi-idual.
his approach used b1 =and:s "nd is an e?ample o, the FFFFF approach.
a. shotgun
b. ri,le
c. Square peg< square
d. #ishing pole
e$ All o, these statements can be used to describe the approach used b1 =and:s "nd.
ANS: (
A ri,le approach has a more narro9 ,ocus 9hile a shotgun approach is a much more broad. A ri,le
approach ,ocuses on identi,1ing and communicating 9ith a smaller group o, qualit1 prospects< 9hile a
shotgun approach ,ocuses on touching a large number o, prospects.
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>. Ahen Coca Cola sent users o, the M1 Co.e Re9ards program digital coupons ,or ,ree trials o, its ne9
Co.e Hero product more than 133<333 people redeemed them. Ct 9ould ha-e cost Co.e ,ar more to
randoml1 distribute enough coupons to the general mar.et to get that le-el o, sampling. his is an
e?ample o, the po9er o, the FFFFF approach.
a. ri,le
b. machine gun
c. stealth mar.eting
d. gorilla mar.eting
e. shotgun
ANS: A
A ri,le approach attempts to ,ocus more on qualit1 prospects 9hile a shotgun approach ,ocuses on
quantit1 o, prospects.
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@. Customer relationship management is accomplished b1 all o, the ,ollo9ing "IC"!:
a. o,,ering the lo9est prices o, all ma2or competitors
b. organizing the compan1 around customer segments
c. establishing and trac.ing customer interactions 9ith the compan1
d. ,ostering customer*satis,1ing beha-iors
e. lin.ing all processes o, the compan1 ,rom its customers through its suppliers
ANS: A
satis,action b1 ,ocusing on highl1 de,ined and precise customer segments< but it does not mean that
o,,ering the lo9est prices is necessar1.
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&. he di,,erence bet9een traditional mar.eting and customer relationship mar.eting can be compared to
the di,,erence bet9een:
a. night and da1
b. boning a ,ish and dressing a chic.en
c. mice and elephants
d. shooting a ri,le and a shotgun
e. circles and squares
ANS: 4
C, 1ou ha-e good aim< a ri,le is the more e,,ecti-e 9eapon to use (i.e.< CRM).
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13. Ahich o, the ,ollo9ing statements about the CRM c1cle is trueJ
a. he letters CRM are an acron1m ,or consumer relationship mar.eting.
b. he CRM c1cle does not a,,ect emplo1ees outside the mar.eting and management
,unctional areas.
c. he CRM c1cle is continuous and circular 9ith no prede,ined start or end point.
d. he CRM c1cle ta.es a simplistic perspecti-e on customers.
e$ All o, these statements about the CRM c1cle are true.
ANS: C
CRM is o,ten described as a closed*loop s1stem that builds relationships 9ith customers**one that is
continuous and circular 9ith no predetermined starting or end points.
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11. Ahen ESAA insurance compan1 collects rele-ant in,ormation ,rom customers< such as date o, last
communication 9ith the customer< and ho9 o,ten the customer contacts the compan1< this is an
e?ample o,:
a. establishing mar.eting ob2ecti-es
b. capturing rele-ant customer data on interactions
c. identi,1ing customer relationships 9ith the organization
d. understanding the interactions the compan1 has 9ith current customers
e. deciding on a segmentation strateg1
ANS: (
his is an e?ample o, a compan1 that uses a CRM approach to capture rele-ant customer data on
interactions.
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1%. As the second step in the CRM c1cle a compan1 must:
a. establish mar.eting ob2ecti-es
b. captures rele-ant customer data on interactions
c. identi,1 customer relationships 9ith the organization
d. understand the interactions the compan1 has 9ith current customers
e. decide on a segmentation strateg1
ANS: 4
o initiate the CRM c1cle< a compan1 must ,irst identi,1 customer relationships 9ith the organization.
Ne?t the compan1 must understand the interactions 9ith current customers.
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1$. Ahich o, the ,ollo9ing statements about a CRM s1stem is trueJ
a. A critical component o, a CRM s1stem is the use o, the appropriate technolog1 to store
and integrate customer data.
b. A CRM s1stem operates on the theor1 that all customers are equall1 important.
c. 4ue to pri-ac1 la9s< a CRM s1stem onl1 disseminates customer in,ormation to those 9ho
are actuall1 in da1*to*da1 contact 9ith customers.
d. A compan1 using a CRM s1stem must -ie9 its customers as bits o, data.
e$ All o, these statements about a CRM s1stem are true.
ANS: A
he CRM s1stem allo9s companies to ma.e use o, the @36%3 rule. Customers should be -ie9ed
comprehensi-el1.
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'!: AACS( echnolog1 / (0" Model Customer / (0" Model Strateg1
17. A compan1 that has a(n) FFFFF customizes its product o,,erings based on data generated through
interaction bet9een the customer and the compan1.
a. ethnocentric perspecti-e
b. suppl1*based ,ocus
c. sales orientation
d. suppl1*based ,ocus
e. customer*centric ,ocus
ANS: "
A customer*centric ,ocus is represented b1 adherence to the mar.eting concept.
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18. (est (u1 instituted a s1stem in all o, its stores that customizes their product o,,erings ,or the ,i-e .e1
customer segments it has identi,ied: a,,luent pro,essional males< 1oung entertainment enthusiasts<
upscale suburban moms< ,amilies 9ho are practical technolog1 adopters< and small businesses 9ith
less than %3 emplo1ees. his ,ocus implies that (est (u1 is FFFFF.
a. ethnocentric
b. demand*based
c. sales*centric
d. suppl1*based
e. customer*centric
ANS: "
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1;. Cn a CRM en-ironment< FFFFF is de,ined as the in,ormal process o, collecting customer in,ormation
through customer contacts and ,eedbac. on product and ser-ice per,ormance.
a. le-eraging
b. .no9ledge management
c. interaction
d. data mining
e. learning
ANS: "
he in,ormal process o, collecting customer in,ormation through customer contacts and ,eedbac. on
product and ser-ice per,ormance is learning.
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1>. Customer*centric is an internal management philosoph1 similar to:
a. utilitarianism
b. Kerzberg5s theor1 o, moti-ation
c. the equit1 theor1
d. the mar.eting concept
e. consumerism
ANS: 4
Ender this philosoph1< the compan1 customizes its product and ser-ice o,,ering based on data
generated through interactions bet9een the customer and the compan1.
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1@. he 9a1 to people5s hearts ma1 be through their stomachs< but Lra,t #oods has decided not to rel1
e?clusi-el1 on that ma?im to secure the long*term lo1alt1 o, its customers. Ct is also ma.ing ne9
product de-elopments through data generated ,rom interaction bet9een Lra,t and its customers. Cn
other 9ords< Lra,t #oods:
a. is sales oriented
b. has a standardization ,ocus
c. is ethnocentric
d. has a customer*centric ,ocus
e. is product oriented
ANS: 4
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1&. FFFFF re,ers to the latitude organizations besto9 on their representati-es to negotiate mutuall1
satis,1ing commitments 9ith customers.
a. Consumer learning
b. Customerization
c. "mpo9erment
d. Autonom1
e. Cnteraction
ANS: C
"mpo9erment is the delegation o, authorit1 to sol-e customers: problems quic.l1**usuall1 b1 the ,irst
person that the customer noti,ies regarding the problem.
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%3. (est (u1:s !er,ormance Ser-ice !lan (!S!) guarantees products against damage and mal,unctioning.
All initial purchase contact in,ormation is .ept in the customer database< along 9ith copies o, the !S!.
C, a customer calls (est (u1 9ith a problem< the representati-e 9ill ha-e access to all this in,ormation
and can either help the customer or re,er him or her to another representati-e. he a-ailabilit1 o, this
customer in,ormation tends to:
a. reduce customer calls
b. empo9er emplo1ees
c. encourage re,errals to other emplo1ees
d. hurt emplo1ee morale
e. increase the need ,or management super-ision
ANS: (
"mpo9erment re,ers to the latitude organizations besto9 on their representati-es to negotiate mutuall1
satis,1ing commitments 9ith customers.
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%1. FFFFF is the process b1 9hich learned in,ormation ,rom customers is centralized and shared in order to
enhance the relationship bet9een customers and the organization.
a. Lno9ledge management
b. =earning
c. 4atabase mar.eting
d. Cnteracti-e mar.eting
e. Cn,ormation mar.eting
ANS: A
his is the de,inition o, .no9ledge management.
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%%. Ahen Son1 !la1station users 9ant to access amenities on the Son1 9eb site< the1 are required to log in
and suppl1 in,ormation such as their name< e*mail address< and birth date. he1 are also gi-en the
opportunit1 to complete a sur-e1 that captures much more in,ormation about the person and their
gaming habits. Son1 gathers this in,ormation and ma.es it a-ailable internall1 to better ser-e the
customer. his is an e?ample o, a compan1 using:
a. learned research
b. stimulus6response mar.eting
c. .no9ledge management
d. sales*oriented mar.eting
e. moti-ational research
ANS: C
Lno9ledge management is the process b1 9hich learned in,ormation ,rom customers is centralized
and shared in order to enhance the relationship bet9een customers and the organization.
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%$. A(n) FFFFF is the point at 9hich a customer and a compan1 representati-e e?change in,ormation and
de-elop learning relationships.
a. social contact
b. interaction
c. empo9ering moment
d. equilibrium point
e. transactional d1ad
ANS: (
An interaction is a touch point at 9hich a customer and a compan1 representati-e e?change
in,ormation and de-elop learning relationships< but 9ith CRM< it is the customer< not the organization<
that de,ines the terms o, the interaction.
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%7. =es Ailes de la Mode is a Guebec retail store that promotes the highest qualit1 customer ser-ice b1
maintaining the importance o, each FFFFF< the point at 9hich customer and store personnel e?change
in,ormation and de-elop learning relationships.
a. moment o, truth
b. inter-ention
c. data capture
d. response situation
e. interaction
ANS: "
An interaction is the point at 9hich a customer and a compan1 representati-e e?change in,ormation
and de-elop learning relationships.
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%8. Cn a CRM s1stem< FFFFF are all areas o, the business 9here customers ha-e contact 9ith the compan1
and data ma1 be gathered and used to guide and direct the decision ma.ing 9ithin that business unit.
a. touch points
b. ,ocus areas
c. data mining
d. in,ormation search periods
e. obser-ational points
ANS: A
Customers pro-ide data through these -arious touch points.
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%;. Apple< Cnc. has stores< a Aeb site< and a toll*,ree phone number 9here consumers can pro-ide -aluable
in,ormation to the compan1 in de-eloping a CRM s1stem. All these possible areas o, the compan1
9here consumers can communicate 9ith the business are called:
a. touch points
b. ,ocus areas
c. data mining
d. in,ormation search periods
e. e?perimental points
ANS: A
Cn a CRM s1stem< touch points are all areas o, the business 9here customers ha-e contact 9ith the
compan1 and data ma1 be gathered and used to guide and direct the decision ma.ing 9ithin that
business unit.
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%>. he 4etroit igers< a Ma2or =eague (aseball team< used customer satis,action sur-e1s o, season tic.et
holders to determine 9h1 the number o, season tic.et holders 9as declining. his sur-e1 9as an
e?ample o, a(n):
a. touch point
b. ,ocus area
c. data search
d. in,ormation recognizance
e. obser-ational point
ANS: A
ouch points are all areas o, the business 9here customers ha-e contact 9ith the compan1 and data
ma1 be gathered and used to guide and direct the decision ma.ing 9ithin that business unit.
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%@. =es Ailes de la Mode< a Guebec retail store that promotes the highest qualit1 customer ser-ice< has not
onl1 established itsel, as a top retailer in the pro-ince< but also as a credit card and point program
compan1< a cataloger and Cnternet seller< and e-en a publisher. hrough gathering customer
in,ormation ,or its credit cards and point program< through catalog and Cnternet orders< and through
subscriptions to its publications< =es Ailes de la Mode has created se-eral di,,erent:
a. ,ocus areas
b. touch points
c. interrelationship promotions
d. distribution channels
e. sources o, distribution in,ormation
ANS: (
ouch points are all areas o, the business 9here customers ha-e contact 9ith the compan1 and data
ma1 be gathered and used to guide and direct the decision ma.ing 9ithin that business unit.
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%&. Kudson5s (a1 Compan1 in Canada operates he (a1< Hellers< Kome 'ut,itters< and hbc.com. At each
o, its stores and its Aeb site< it gi-es K(C Re9ards that enable members to earn points< 9hich can be
redeemed in the K(C Re9ards catalog ,or -arious items< including tra-el< leisure and entertainment
items< Air Miles re9ard miles< or (a1 and Hellers gi,t certi,icates. o use the s1stem< customers ha-e
to pro-ide their K(C card number. his re9ard program enables Kudson5s (a1 to engage in FFFFF
interactions 9ith its customers.
a. point*o, sale and Aeb*based
b. customer*centric and technolog1*centric
c. retail*centric and Aeb*based
d. transaction*based and retail*centric
e. point*o,*sale and retail*centric
ANS: A
(ecause Kudson5s (a1 does business at its stores and at its Aeb site< it engages in both point*o,*sale
and Aeb*based interactions.
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'!: AACS( echnolog1 / (0" Model 'nline6Computer / (0" Model Customer
$3. Communications bet9een customers and organizations that occur in stores or at in,ormation .ios.s are
called:
a. li-e interactions
b. point*o,*sale interactions
c. empo9erment points
d. sur-e1 interactions
e. product interactions
ANS: (
!oint*o,*sale interactions occur in stores or at in,ormation .ios.s.
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$1. FFFFF interactions occur 9hen customers bu1 products in a store.
a. !oint*o,*sale
b. Relationship*based
c. Cost*based
d. Retail*centric
e. 4istribution*,ocused
ANS: A
he in,ormation pro-ided is then used ,or mar.eting and merchandising acti-ities.
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$%. he e?ecuti-e -ice president o, Kudson5s (a1 Compan1 in Canada (a ma2or retail chain) said in an
inter-ie9< MAe ha-e to be able to o,,er customers 9hat the1 9ant 9hen the1 9ant it. Ae need better
insight into their spending**9e ha-e gaps in .no9ledge o, ho9 customers spend.M FFFFF interactions
9ould pro-ide the retail chain the best opportunit1 ,or learning about its customers.
a. !oint*o,*sale
b. Relationship*based
c. Retail*centric
d. echnolog1*centric
e. Sales*oriented
ANS: A
'nl1 alternati-e NaO is the name o, one o, the t1pes o, interactions discussed in the te?t.
!S: 1 R"#: $$$ '(): %1*$ +!": App
$$. he traditional approach ,or acquiring data ,rom customers is through:
a. encoding de-ices
b. media
c. ,eedbac. mechanisms
d. channel interactions
e. public relations
ANS: 4
Channel interactions include store -isits< con-ersations 9ith salespeople< interactions -ia the Aeb<
traditional phone con-ersations< and 9ireless communications.
!S: 1 R"#: $$$ '(): %1*7 +!": Comp
$7. Ahich o, the ,ollo9ing is an e?ample o, a channel through 9hich customer data are traditionall1
gatheredJ
a. store -isits
b. con-ersations 9ith salespeople
c. interactions -ia the Aeb
d. phone con-ersations
e$ all o, these
ANS: "
Channel interactions include store -isits< con-ersations 9ith salespeople< interactions -ia the Aeb<
traditional phone con-ersations< and 9ireless communications.
!S: 1 R"#: $$$ '(): %1*7 +!": Comp
$8. Cn a speech< 4a-id !oirier< chie, in,ormation o,,icer o, Kudson5s (a1 Compan1< a Canadian retailer<
said< MAe PKudson5s (a1 Compan1Q had all .inds o, data in di,,erent places. Ae didn5t ha-e a single
-ie9 o, the customer until 9e ,ocused on ,inding one method to manage relationships 9ith our
customers.M Kudson5s (a1 9ould use a FFFFF to pro,ile customer segments ,or better CRM mar.eting
e,,orts.
a. data mart
b. customer in,ormation s1stem
c. data 9arehouse
d. decision support s1stem
e. data cluster
ANS: C
A data 9arehouse is essentiall1 a -er1 large< corporate*9ide database< culled ,rom a number o, legac1
s1stems< such as order ,ul,illment< distribution and sales< alread1 in place 9ithin the organization.
!S: 1 R"#: $$7 '(): %1*8 +!": App
$;. A FFFFF is a central repositor1 ,or data ,rom -arious ,unctional areas o, the organization that are
stored and in-entoried on a centralized computer s1stem so that in,ormation can be shared across all
,unctional departments o, the business.
a. data mart
b. customer in,ormation s1stem
c. data 9arehouse
e. data cluster
ANS: C
his is the de,inition o, a data 9arehouse.
!S: 1 R"#: $$7 '(): %1*8 +!": 4e,
$>. Continental Airlines has a s1stem that captures in,ormation on e-er1thing ,rom ,light schedules< seat
in-entories< and customer pro,iles that is accessible b1 $8 departments and 1<$33 emplo1ees.
Continental:s s1stem is an e?ample o, a(n):
a. in,ormation mine
b. .no9ledge distribution center
c. in,ormation e?traction unit
d. in,ormation storage unit
e. data 9arehouse
ANS: "
A data 9arehouse is a central repositor1 ,or data ,rom -arious ,unctional areas o, the organization.
hese data can be shared b1 all o, the organization5s departments.
!S: 1 R"#: $$7 '(): %1*8 +!": App
$@. M=ots o, organizations ha-e customer data< but not in a 9a1 that5s use,ul<M said a spea.er at a recent
retail mar.eting con,erence. MRetailers ha-e all .inds o, data in di,,erent places**the1 don:t ha-e a
single -ie9 o, the customer.M he spea.er is sa1ing that retailers do N' use:
a. in,ormation distribution centers
b. data 9arehouses
c. in,ormation e?traction mines
d. data intermediaries
e. mar.eting in,ormation s1stems
ANS: (
A data 9arehouse is a central repositor1 ,or data ,rom -arious ,unctional areas o, the organization.
hese data can be shared b1 all o, the organization5s departments.
!S: 1 R"#: $$7 '(): %1*8 +!": Comp
$&. 4ic.:s Sporting Roods collects a -ast amount o, data through its Aeb site< direct mailings< and retail
stores. o be use,ul< all o, these data 9ould be centralized in a(n):
a. data mart
b. decision matri?
c. data 9arehouse
e. data cluster
ANS: C
A data 9arehouse is essentiall1 a -er1 large< corporate*9ide database< culled ,rom a number o,
separate s1stems< such as billing< accounting< order ,ul,illment< distribution< customer ser-ice< and
mar.eting and sales< alread1 in place 9ithin an organization.
!S: 1 R"#: $$7 '(): %1*8 +!": App
73. A(n) FFFFF is a collection o, data< especiall1 one that can be accessed and manipulated b1 computer
so,t9are.
a. database
b. data pro,ile
c. algorithm
d. b1te
e. interaction pro,ile
ANS: A
A database is de,ined as a collection o, data< especiall1 one that can be accessed and manipulated b1
computer so,t9are.
!S: 1 R"#: $$7 '(): %1*8 +!": 4e,
71. he core o, the data 9arehouse is:
a. empo9ered emplo1ees
b. transaction channels o, communication
c. point*o,*sale interactions
d. the database
e. a compiled list
ANS: 4
A database is a collection o, data.
!S: 1 R"#: $$7 '(): %1*8 +!": 4e,
7%. Ahich t1pe o, list includes names and addresses o, indi-iduals 9ho ha-e responded to an o,,er o,
some .indJ
a. interacti-e list
b. compiled list
c. recent list
d. response list
e. A*list
ANS: 4
Response lists tend to be especiall1 -aluable because past beha-ior is a strong predictor o, ,uture
beha-ior.
!S: 1 R"#: $$8 '(): %1*8 +!": 4e,
7$. =esle1 '9ens has limited mone1 to in-est in a mailing to people 9ho might be interested in
subscribing to a ne9 magazine about ma.ing scrapboo.s. She 9ants to mail to those prospects 9ith
the highest probabilit1 o, becoming subscribers. '9ens should use a:
a. compiled list
b. data mine
c. response list
d. management database
e. data 9arehouse acti-ation
ANS: C
A response list includes the names and addresses o, indi-iduals 9ho ha-e responded to an o,,er in the
past.
!S: 1 R"#: $$8 '(): %1*8 +!": App
77. he 'ld Aestbur1 College #oundation raised S@3<333 at its MA aste o, =ong Csland<M a gala dinner
9here all proceeds 9ent to support scholarship ,unds and educational programs at SEN+ College at
'ld Aestbur1. Attendees 9ere people 9ho had contributed to the scholarship program pre-iousl1 and
9ere reached through a:
a. compiled list
b. data mine
c. response list
d. management database
e. data 9arehouse acti-ation
ANS: C
A response list includes the names and addresses o, indi-iduals 9ho ha-e responded to an o,,er in the
past.
!S: 1 R"#: $$8 '(): %1*8 +!": App
78. aquan recentl1 purchased a R" micro9a-e o-en using a S83 rebate o,,er. Ke ,illed out the rebate
certi,icate and sent it to an address pro-ided b1 R". he rebate certi,icate contained aquan5s ,ull
name< his phone number< his address< and some purchase in,ormation. aquan has most li.el1 become
part o, R"5s FFFFF list.
a. compiled
b. coo.ies
c. response
d. electronic cash
e. Cnternet research
ANS: C
A response list includes the names and addresses o, indi-iduals 9ho ha-e responded to a similar o,,er
in the past.
!S: 1 R"#: $$8 '(): %1*8 +!": App
7;. A(n) FFFFF list generall1 includes names and addresses gleaned ,rom directories or membership
rosters.
a. predicti-e
b. compiled
c. response
d. actionable
e. disintegrated
ANS: (
A compiled list is de-eloped b1 gathering names and addresses ,rom telephone directories and
membership rosters< usuall1 enhanced 9ith in,ormation ,rom public records.
!S: 1 R"#: $$8 '(): %1*8 +!": 4e,
7>. =eah 9ants to de-elop a mailing list o, people 9ho ha-e participated in bic1cle rides ,or charities. She
has o,,ered to purchase a list o, last 1ear:s Alabama*based Ride ,or =i,e< 9hich 9as held to raise ,unds
,or cancer research. =eah is building a(n) FFFFF list.
a. actionable
b. e*mail
c. response
d. compiled
e. predicti-e
ANS: 4
A compiled list is one that generall1 includes names and addresses gleaned ,rom directories or
membership rosters.
!S: 1 R"#: $$8 '(): %1*8 +!": App
7@. FFFFF is the addition o, in,ormation to customer or prospect records ,or the purpose o, better
describing or better determining the responsi-eness o, customers or prospects.
a. Cn,ormation ,ormatting
b. 4atabase enhancement
c. 4ata mining
d. 4ata shading
e. !redicti-e modeling
ANS: (
4atabase enhancement in-ol-es purchasing in,ormation on customers or prospects to better describe
their needs or determine ho9 responsi-e the1 might be to mar.eting programs.
!S: 1 R"#: $$8 '(): %1*8 +!": 4e,
7&. FFFFF is the process o, ,inding hidden patterns and relationships in the customer data stored in the data
9arehouse.
a. 4ata pro,iling
b. Cluster anal1sis
c. Regression anal1sis
d. Customer pro,iling
e. 4ata mining
ANS: "
his is the de,inition o, data mining.
!S: 1 R"#: $$; '(): %1*; +!": 4e,
83. Aal*Mart captures point*o,*sale transactions ,rom thousands o, stores in se-eral countries and
continuousl1 transmits these data to its massi-e data 9arehouse. Aal*Mart allo9s more than $<833
suppliers to access data on their products and per,orm data anal1ses. hese suppliers use the data to
identi,1 customer bu1ing patterns at the store le-el. he1 use this in,ormation to manage local store
in-entor1 and identi,1 ne9 merchandising opportunities. (oth Aal*Mart and its suppliers are engaged
in:
a. in,ormation ,ormatting
b. database enhancement
c. data mining
d. data shading
e. descripti-e modeling
ANS: C
4ata mining is data anal1sis that is used to ,ind hidden patterns and relationships in the customer data
stored in data 9arehouses.
!S: 1 R"#: $$; '(): %1*; +!": App
81. 'utdoor gear retailer Recreational "quipment< Cnc. (R"C) in Aashington collects a -ast amount o, data
through its Aeb site< direct mailings< and retail stores. Ahen R"C considers ne9 store locations< it
e?amines order data to ,ind places 9ith high concentrations o, customers bu1ing online and through
the compan15s catalogs. R"C 9ould be using FFFFF to identi,1 potential store locations.
a. in,ormation ,ormatting
c. data mining
d. data shading
e. customer prediction
ANS: C
4ata mining used to ,ind hidden patterns and relationships in the customer data stored in the data
9arehouse.
!S: 1 R"#: $$; '(): %1*; +!": App
8%. #ingerhut< the catalog retailer< used FFFFF to determine that customers 9ho change residences are
three times more li.el1 than customers 9ho ha-e not mo-ed to bu1 tables< to9els< and decorati-e
products but no more li.el1 to bu1 2e9elr1 or ,oot9ear. As a result< #ingerhut created a catalog ,or
people 9ho ha-e changed residences.
a. data mining
b. in,ormation search
c. in,ormation retrie-al channels
d. e-o.ed sets
e. an in,ormation en-ironment
ANS: A
4ata mining is a process that identi,ies signi,icant customer patterns.
!S: 1 R"#: $$; '(): %1*; +!": App
8$. Ahich o, the ,ollo9ing 9ould allo9 an online retailer li.e #rontgate to learn that customers 9ho
purchase electronic products also purchase home o,,ice ,urnitureJ
a. .no9ledge interpretation
b. s1stems management
c. data mining
d. in,ormation e?traction
e. in,ormation search
ANS: C
4ata mining is a process that identi,ies signi,icant customer patterns.
!S: 1 R"#: $$; '(): %1*; +!": App
87. #ord Canada has turned to the Cnternet to help it stand apart ,rom its competitors in the automoti-e
industr1. 'ne Cnternet ad sho9s a #ord truc. dri-ing out o, a ,orest 9ith its engine roaring and mud
splattering on the screen. he 9ipers come on to re-eal the #ord M(uilt oughM logo< 9hich then
recedes to the side o, the screen. he ad directs people to a site 9here the1 can sign up to recei-e
direct mail ,rom #ord. #ord Canada 9ill combine this database 9ith a database o, ne9 #*series truc.
o9ners to loo. ,or signi,icant patterns and trends. #ord Canada 9ill use:
a. an in,ormation search s1stem
b. .no9ledge trending
c. data interpolation
d. data graphing
e. data mining
ANS: "
4ata mining is used to identi,1 signi,icant patterns and trends
!S: 1 R"#: $$; '(): %1*; +!": App
'!: AACS( echnolog1 / (0" Model 'nline6Computer / (0" Model !romotion
88. Ahich o, the ,ollo9ing techniques used to anal1ze mar.eting databases considers 9hether a customer
has made a purchase recentl1 as 9ell as ho9 o,ten that customer ma.es a purchaseJ
a. recenc1*,requenc1*monetar1 anal1sis (R#M)
b. predicti-e modeling
c. customer -aluation
d. data mining
e. li,etime -alue anal1sis
ANS: A
Recenc1*,requenc1*monetar1 anal1sis (R#M) identi,ies those customers most li.el1 to purchase again
because the1 ha-e bought recentl1< bought ,requentl1< or spent a speci,ied amount o, mone1 9ith the
,irm.
!S: 1 R"#: $$; '(): %1*; +!": 4e,
8;. Cn the R#M anal1sis model< NRO stands ,or:
a. returning
b. recenc1
c. reimbursement
d. relationship
e. retention
ANS: (
his is the recenc1*,requenc1*monetar1 (R#M) model.
!S: 1 R"#: $$; '(): %1*; +!": Comp
8>. Cn the R#M anal1sis model< N#O stands ,or:
a. ,requenc1
b. ,unction
c. ,ree
d. ,orecast
e. ,raming
ANS: A
his is the recenc1*,requenc1*monetar1 -alue model.
!S: 1 R"#: $$; '(): %1*; +!": Comp
8@. Cn the R#M anal1sis model< the NMO stands ,or:
a. mar.eting
b. management
c. moti-ation
d. maturit1
e. monetar1 -alue
ANS: "
his is the recenc1*,requenc1*monetar1 -alue model.
!S: 1 R"#: $$; '(): %1*; +!": Comp
8&. =.=. (ean< Cnc. has been reducing the number o, catalogs it sends out 9hile increasing its sales and
pro,its. Aith FFFFF< =.=. (ean no9 identi,ies customers 9ho ha-e purchased recentl1 and o,ten and
ha-e spent considerable mone1. Such customers are most li.el1 to purchase again.
a. predicti-e data
b. trending
c. correlation anal1sis
d. recenc1*,requenc1*monetar1 anal1sis
e. h1pothesis testing
ANS: 4
R#M anal1sis identi,ies customers li.el1 to purchase again because the1 ha-e bought recentl1 or
,requentl1 or spent a lot.
!S: 1 R"#: $$; '(): %1*; +!": App
;3. Ahich o, the ,ollo9ing is a data manipulation technique that pro2ects the ,uture -alue o, the customer
o-er a period o, 1ears using the assumption that mar.eting to repeat customers is more pro,itable than
mar.eting to ,irst*time bu1ersJ
a. recenc1*,requenc1*monetar1 -alue (R#M) anal1sis
b. cluster anal1sis
c. li,etime -alue anal1sis (=D)
d. mar.et segmentation
e. predicti-e modeling
ANS: C
his is the de,inition o, li,etime -alue anal1sis (=D).
!S: 1 R"#: $$; '(): %1*; +!": 4e,
;1. he basic assumption o, FFFFF is that mar.eting to repeat customers is more pro,itable than mar.eting
to ,irst*time bu1ers.
a. customer segmentation
b. predicti-e modeling
c. customer -aluation
d. data manipulation
e. li,etime -alue anal1sis
ANS: "
=i,etime -alue anal1sis is a data manipulation technique that pro2ects the ,uture -alue o, the customer
o-er a period o, 1ears using the assumption that mar.eting to repeat customers is more pro,itable than
mar.eting to ,irst*time bu1ers.
!S: 1 R"#: $$; '(): %1*; +!": Comp
;%. FFFFF uses a past set o, occurrences to predict the li.elihood that some other occurrence< such as a
response or purchase< 9ill ta.e place in the ,uture.
a. Customer manipulation
b. !redicti-e modeling
c. 4ata mining
d. =i,etime -alue anal1sis
e. Causal research
ANS: (
!redicti-e modeling is a data manipulation technique in 9hich mar.eters tr1 to determine< based on
some past set o, occurrences< 9hat the odds are that some other occurrence 9ill ta.e place in the
,uture.
!S: 1 R"#: $$> '(): %1*; +!": 4e,
'!: AACS( echnolog1 / (0" Model Strateg1
;$. he cable industr1 needs to identi,1 current and ,uture tra,,ic patterns so it can manage the gro9th o,
cable s1stems. (ecause o, high costs< it is undesirable to bu1 band9idth be,ore it is needed. Ct is also
time*consuming to upgrade a cable s1stem. #urthermore< consumers hate to 9ait ,or capacit1
increases. here,ore< the industr1 should use FFFFF to determine 9hen and 9here ne9 s1stems should
be implemented.
a. li,etime anal1sis
b. recenc1*,requenc1*monetar1 anal1sis
c. cross*selling
d. speed o, data communications
e. predicti-e modeling
ANS: "
hrough predicti-e modeling< mar.eters tr1 to determine 9hat the odds are that s1stem upgrades 9ill
be needed in the ,uture.
!S: 1 R"#: $$> '(): %1*; +!": App
;7. #ord Motor Compan1 has launched an online e,,ort to mar.et its #*Series truc.s. Ct hopes to use its
database capabilities to capture -aluable data on car bu1ers. #ord plans on cross*re,erencing ne9 #*
series o9ners 9ith the database generated ,rom this online campaign to see ho9 man1 names are
duplicated. #ord 9ill use these data to ,orecast 9hich campaigns ha-e the greatest probabilit1 o,
success. Ahich o, the ,ollo9ing methods 9ill #ord most li.el1 use to anal1ze these dataJ
a. li,etime -alue anal1sis (=D)
b. present -alue6,uture -alue assessment
c. recenc1*,requenc1*monetar1 anal1sis
d. predicti-e modeling
e. reach*,requenc1*media anal1sis
ANS: 4
some past set o, occurrences< 9hat the odds are that some other occurrence< such as a purchase< 9ill
ta.e place.
!S: 1 R"#: $$> '(): %1*; +!": App
;8. Ahich technique 9as li.el1 used to suggest that a customer 9ho 9anted to bu1 a S%& shirt 9ould also
be a li.el1 prospect ,or a cigar humidor.
a. predicti-e modeling
b. customer segmentation
c. mar.et aggregation
d. recenc1*,requenc1*monetar1 anal1sis
e. data interpolation
ANS: A
some past set o, occurrences< 9hat the odds are that some other occurrence< such as a purchase< 9ill
ta.e place.
!S: 1 R"#: $$> '(): %1*; +!": App
;;. 4ata mining identi,ies the most pro,itable customers and prospects. Managers can then design tailored
mar.eting strategies to best appeal to the identi,ied segments. Cn CRM this is commonl1 re,erred to as
FFFFF customer in,ormation to ,acilitate enhanced relationships 9ith customers.
a. manipulating
b. le-eraging
c. har-esting
d. con-erting
e. managing
ANS: (
'nce customer data are anal1zed and trans,ormed into usable in,ormation< the in,ormation must be
le-eraged.
!S: 1 R"#: $$> '(): %1*> +!": Comp
;>. All o, the ,ollo9ing are common CRM mar.eting database applications "IC"!:
a. cross*selling other products or ser-ices
b. designing targeted mar.eting communications
c. acti-it1*based costing applications
d. impro-ing customer ser-ice
e. campaign management
ANS: C
Acti-it1*based costing applications are not mar.eting database applications. See "?hibit %1.$.
!S: 1 R"#: $$@ '(): %1*> +!": Comp
;@. Ahich o, the ,ollo9ing is a common CRM mar.eting database applicationJ
a. campaign management
b. designing targeted mar.eting communications
c. impro-ing customer ser-ice
d. cross*selling other products or ser-ices
e$ all o, these
ANS: "
All o, these and retaining lo1al customers< rein,orcing customer purchase decisions< inducing product
trial b1 ne9 customers< and increasing e,,ecti-eness o, distribution channel mar.eting are common
CRM mar.eting database applications. See "?hibit %1.$.
!S: 1 R"#: $$@ '(): %1*> +!": Comp
;&. FFFFF in-ol-es de-eloping product o,,erings customized ,or the appropriate customer segment and
then pricing and communicating these o,,erings ,or the purpose o, enhancing customer relationships.
a. ransaction management
b. Campaign management
c. 4ata mining
d. Consumerism
e. Lno9ledge management
ANS: (
his is the de,inition o, campaign management.
!S: 1 R"#: $$> '(): %1*> +!": 4e,
>3. =oo.ing to build up its postpurchase relationships< Reneral Motors recentl1 launched a ser-ice
9hereb1 RM -ehicle o9ners can sign up to get e*mail ser-ice reminders< access in,ormation about
RM -ehicles< and recei-e special promotions. Reneral Motors is using FFFFF to enhance its customer
relationships.
a. modeling
b. scoring
c. -alence management
d. campaign management
e. data mining
ANS: 4
Ct has established a campaign to sell its ser-ices to car bu1ers.
!S: 1 R"#: $$> '(): %1*> +!": App
>1. o target outdoor enthusiasts< Subaru o, America added an outdoor li,e section to its Aeb site that is
organized b1 area o, interest. he site 9ill ser-e as a plat,orm ,or co*mar.eting and promotional
programs. his o,,ering o, customized products to a customer segment ,or the purpose o, enhancing
the auto manu,acturer5s customer relationships is an e?ample o,:
a. campaign management
b. customer aggregation
c. transaction segmentation
d. data mining
e. .no9ledge management
ANS: A
4e-eloping customized o,,erings ,or the appropriate customer segment is a common tactic in
campaign management.
!S: 1 R"#: $$> '(): %1*> +!": App
>%. =es Ailes de la Mode< a Guebec retailer< o,,ers its customers =es Ailes MasterCard. he card is
connected to a points program that o,,ers one point ,or e-er1 S%3 o, purchases on the card and triple
that on purchases made at =es Ailes. Ct also incorporates an electronic chip< through 9hich a S13
coupon is a9arded to each member e-er1 month -ia the electronic gi,t card (on purchases o, S13 or
more e-er1 month). Card members also recei-e ,ree subscriptions to the retailer5s Les Ailes magazine.
his sho9s ho9 CRM can be used:
a. to retain lo1alt1
b. in mass mar.eting
c. to increase .no9ledge about the competition
d. to create transactional relationships
e. to de-elop a compiled list
ANS: A
'ne o, the ad-antages o, CRM is the abilit1 to personalize the message.
!S: 1 R"#: $$@ '(): %1*> +!": App
>$. Man1 high*end hotel chains a9ard points ,or e-er1 dollar spent in one o, their hotels. Customers 9ho
earn a high number o, points are gi-en special pri-ileges that ma1 include upgraded hotel rooms or
se-eral ,ree nights. his is an e?ample o, the le-eraging o, customer in,ormation to:
a. retain lo1al customers
b. rein,orce competiti-e promotional decisions
c. cross*sell other products and ser-ices
d. design targeted mar.eting communications
e. induce product trial b1 ne9 customers
ANS: A
=o1alt1 programs re9ard lo1al customers ,or ma.ing multiple purchases 9ith the ob2ecti-e o, building
long*term relationships.
!S: 1 R"#: $$@ '(): %1*> +!": App
>7. Kudson5s (a1 Compan1 has Canada5s largest re9ard program**K(C Re9ards< 9hich enables members
to earn points at Kudson5s (a1 ,amil1 o, stores< including he (a1< Hellers< Kome 'ut,itters< and
hbc.com. Consumers can redeem points ,or o-er ;33 re9ards in the K(C Re9ards catalog< including
tra-el< leisure and entertainment items< Air Miles re9ard miles< or (a1 and Hellers gi,t certi,icates.
Ahich o, the ,ollo9ing pro-ides the most li.el1 reason 9h1 Kudson5s (a1 Compan1 implemented this
re9ard programJ
a. to reduce problems associated 9ith cultural di-ersit1
b. to ma.e sure the @36%3 principle is not in,luencing its acti-ities
c. to retain lo1al customers
d. to create cogniti-e dissonance
e. to lessen the importance o, customer ser-ice
ANS: C
he K(C Re9ards program is a lo1alt1 program.
!S: 1 R"#: $$@ '(): %1*> +!": App
>8. Esing customer database in,ormation to o,,er related products to customers is called:
a. incremental selling
b. cross*selling
c. relationship mar.eting
d. in,ormed selling
e. s1nergistic selling
ANS: (
CRM pro-ides man1 opportunities to cross*sell related products.
!S: 1 R"#: $$@ '(): %1*> +!": 4e,
>;. "-er1 time (arr1 orders running shoes ,rom Road Runner Sports< the Aeb site or the operator on the
phone al9a1s tries to sell him something in addition to the shoes he ordered< such as soc.s or other
apparel. his is an e?ample o,:
a. data mining
b. cross*selling
c. trading up
d. database enhancement
e. a database channel
ANS: (
Cross*selling uses past customer bu1ing in,ormation to as. ,or additional sales.
!S: 1 R"#: $$@ '(): %1*> +!": App
>>. According to the C"' o, Allied ',,ice !roducts< NAe5re a head*count business: C .no9 that i, 1ou
ha-e a ;3*person o,,ice< 1ou should bu1 S$33 9orth o, basic o,,ice suppliesTpaper< pens< staplesT
,rom us 9ith each order< but i, that5s all 9e get< 9e stagnate. #or us to gro9< 9e ha-e to con-ince the
customer< 9ho alread1 li.es our products and ser-ice< to bu1 more than 2ust basic suppliesU 9e ha-e to
increase the order b1 13< %3< or $3 times.O Allied5s salespeople are trained to push the compan15s less
traditional< higher*margin lines such as co,,ee and re,reshments< printing and ,orms management< and
o,,ice ,urniture. Allied:s salespeople are engaging in:
a. cross*selling
b. trading up
c. bu1er empo9erment
d. alliance building
e. bundling
ANS: A
Cross*selling uses past customer bu1ing in,ormation to as. ,or additional sales.
!S: 1 R"#: $$@ '(): %1*> +!": App
>@. Subaru o, America targeted outdoor enthusiasts 9hen it added an outdoor li,e section to its Aeb site<
organized b1 area o, interest. he site 9ill ser-e as a plat,orm ,or co*mar.eting and promotional
programs and 9ill allo9 Subaru to gather most o-ert and co-ert in,ormation. Ahich o, the ,ollo9ing
pro-ides the most li.el1 reason 9h1 Subaru has added this section to its siteJ
a. to create cogniti-e dissonance
b. to reduce problems associated 9ith cultural di-ersit1
c. to increase the e,,ecti-eness o, its channels o, distribution
d. to lessen the importance o, customer ser-ice
e. to design more targeted mar.eting communications
ANS: "
(1 designing di,,erent sites ,or di,,erent segments< it is targeting customers.
!S: 1 R"#: $$& '(): %1*> +!": App
>&. A,ter Ruth and Mi.e had paid in ad-ance ,or their 9ee.5s sta1 at a Dermont Cnn< Ruth ,elt that the1
might ha-e chosen poorl1 and that the1 9ere committing themsel-es to sta1 at a place the1 might hate.
hen Ruth got a letter ,rom the Cnn5s o9ner stating that she 9as loo.ing ,or9ard to their -isit and
as.ing 9hat the1 most en2o1ed ,or brea.,ast. he hospitalit1 o, the letter dealt 9ith Ruth5s cogniti-e
dissonance b1:
a. cross*selling
b. disintermediation
c. spamming and ,laming
d. implementing a penetration strateg1
e. rein,orcing her purchase decision
ANS: "
A database o,,ers mar.eters an e?cellent opportunit1 to reach out to customers to rein,orce the
purchase decision.
!S: 1 R"#: $$& '(): %1*> +!": App
@3. CRM concerns man1 Americans because:
a. o, the large number o, people 9ho must be ser-ed
b. not all customers ha-e access to CRM mar.eting
c. o, the potential ,or in-asion o, pri-ac1
d. o, the aggressi-e nature o, mar.eters that use CRM
e. o, the e?pense to consumers
ANS: C
Consumers ha-e concerns because o, the potential ,or in-asion o, pri-ac1.
!S: 1 R"#: $71 '(): %1*> +!": Comp
@1. Ahen #ord Motor Compan1 launched an online e,,ort to mar.et its #*Series truc.s< it created a
database. 'ne potential problem 9ith the use o, this database is:
a. that customers ma1 percei-e it as an in-asion o, pri-ac1
b. that the database ma1 be used to generate unrepresentati-e ,ocus groups
c. that media alternati-es ma1 be eliminated ,rom promotional campaigns
d. that it ma1 lead to more e?perimental research
e. the lac. o, adequate personal in,ormation on customers
ANS: A
Consumers ha-e concerns because o, the potential ,or in-asion o, pri-ac1.
!S: 1 R"#: $71 '(): %1*> +!": App
NARR("RCN: #requent #liers
Fre%uent Fliers
C, 1ou thin. Reorge Cloone1:s character in the mo-ie Up in the Air 9as pure ,iction< thin. again.
Cloone1 portra1ed a ,requent ,lier 9ho en2o1ed top*o,*the*line per.s the li.es o, 9hich e-en most
NeliteO ,liers don:t e?perience. hat:s because he 9as a member o, American Airline:s in-itation*onl1
ConciergeLe1 recognition program. Most airlines maintain these unpublished super elite ,requent*
,lier plans< such as Continental:s Chairman:s Circle and 4elta:s "?ecuti-e !artner programs. hese
programs are reser-ed ,or the highest*-olume customers in terms o, miles ,lo9n or highest*-alue in
terms o, re-enue. +ou:ll ha-e to ,l1 up9ards o, $33<333 miles or spend S83<333 a 1ear to be in-ited.
NARR"N4
@%. Re,er to #requent #liers. Airlines: commitment to pro-iding premium customer ser-ice to its most
-aluable customers indicates a commitment to:
a. customer relations mapping (CRM)
b. consumer relationship mar.eting (CRM)
c. internal transactional mar.eting
e. consumer replacement mar.et (CRM)
ANS: 4
Customer relationship management (CRM) is a compan1*9ide business strateg1 designed to optimize
pro,itabilit1< re-enue< and customer satis,action b1 ,ocusing on highl1 de,ined and precise customer
groups.
!S: 1 R"#: $%& '(): %1*1
'!: AACS( Re,lecti-e hin.ing / (0" Model Strateg1 NAR: #requent #liers
@$. Re,er to #requent #liers. American Airlines gi-es its gate emplo1ees the authorit1 to hold up a
connecting ,light 9hen a ConciergeLe1 member:s incoming ,light is dela1ed. he delegation o, this
authorit1 to a gate emplo1ee is called:
a. empo9erment
b. tric.le*do9n management
c. centralization
d. s1nerg1
ANS: A
"mpo9erment is the delegation o, authorit1 to sol-e customers: problems quic.l1**usuall1 b1 the ,irst
person that the customer noti,ies regarding the problem.
!S: 1 R"#: $$% '(): %1*%
@7. Re,er to #requent #liers. Most airlines ha-e considerable in,ormation regarding their ,requent ,liers<
some o, 9hich 9as purchased ,rom outside -endors. !urchasing in,ormation on customers to better
describe their needs or to determine ho9 responsi-e the1 might be to mar.eting programs is called:
a. data mining
c. data 9arehouse
d. database e?pansion
ANS: (
1pes o, enhancement data t1picall1 include demographic< li,est1le< or beha-ioral in,ormation.
!S: 1 R"#: $$8 '(): %1*8
NAR: #requent #liers
@8. Re,er to #requent #liers. Airlines ha-e estimated the ,uture -alue o, these elite ,liers and ,ound that
the1 are -er1 pro,itable ,or their business. Ahat technique did the airlines use to pro2ect the ,uture
-alue o, these ,liers o-er a period o, se-eral 1earsJ
a. R#M anal1sis
b. li,etime -alue anal1sis (=D)
c. cluster anal1sis
d. con2oint anal1sis
e. data enhancement anal1sis
ANS: (
=i,etime -alue anal1sis (=D) is a data manipulation technique that pro2ects the ,uture -alue o, the
customer o-er a period o, 1ears using the assumption that mar.eting to repeat customers is more
pro,itable than mar.eting to ,irst*time bu1ers.
!S: 1 R"#: $$; '(): %1*;
'!: AACS( Communication / (0" Model Customer NAR: #requent #liers
@;. Re,er to #requent #liers. he ConciergeLe1 program< 9hich re9ards lo1al customers ,or ma.ing
multiple purchases< is an e?ample o, a(n):
a. R#M program
b. =D program
c. lo1alt1 program
d. customer relationship program
e. interacti-e program
ANS: C
he ob2ecti-e o, lo1alt1 programs is to build long*term mutuall1 bene,icial relationships bet9een a
compan1 and its .e1 customers.
!S: 1 R"#: $$@ '(): %1*>
NARR("RCN: (lood Ser-ices
&loo' Ser(i)es
As ,le?time< consulting< telecommuting< and do9nsizing ma.e it more di,,icult ,or people to donate
blood at the 9or.place< (roo.l1n6Staten Csland (lood Ser-ices has launched a CRM mar.eting
campaign to boost a9areness and repeat donations. "arl1 in the campaign it 9ent to its listings o,
pre-ious donors and pulled out those 9ith birthda1s in #ebruar1< March< and April. hese donors 9ere
sent a birthda1 card 9ith the greeting< M'n the anni-ersar1 o, 1our li,e< 9ould 1ou consider sa-ing
another5s li,eJM
NARR"N4
@>. Re,er to (lood Ser-ices. he card sent b1 the organization is an e?ample o, a:
a. touch point
b. trans,ormational e?change
c. predicti-e campaign
d. point*o,*sale interaction
e. ser-ice message
ANS: A
ouch points are all possible areas o, a business 9here customers communicate 9ith the business.
!S: 1 R"#: $$% '(): %1*$
'!: AACS( Re,lecti-e hin.ing / (0" Model Strateg1 NAR: (lood Ser-ices
@@. Re,er to (lood Ser-ices. he in,ormation about past donors is stored in the organization5s:
a. integration s1stems
b. in,ormation repositor1
c. data mine
d. database
e. spreadsheet
ANS: 4
A database is a collection o, data< especiall1 one that can be accessed and manipulated b1 computer
data.
!S: 1 R"#: $$7 '(): %1*8
NAR: (lood Ser-ices
@&. Re,er to (lood Ser-ices. he organization de-eloped a FFFFF list o, donors to recei-e birthda1 cards.
a. compiled
b. bene,it*based
c. response
d. ,eedbac.
e. proacti-e
ANS: C
A response list is deri-ed ,rom donors (customers) 9ho ha-e indicated interest in the ser-ice (gi-en
blood pre-iousl1).
!S: 1 R"#: $$8 '(): %1*8
'!: AACS( Re,lecti-e hin.ing / (0" Model Customer NAR: (lood Ser-ices
&3. Re,er to (lood Ser-ices. Ahat technique did the organization use to anal1ze its donor in,ormationJ
a. data identi,1ing
b. recenc1*,requenc1*monetar1 anal1sis
c. niche mar.eting
d. predicti-e modeling
e. customer segmentation
ANS: "
Customer segmentation is the process o, brea.ing large groups o, customers into smaller< more
homogeneous groups.
!S: 1 R"#: $$; '(): %1*;
'!: AACS( Re,lecti-e hin.ing / (0" Model Customer NAR: (lood Ser-ices
&1. Re,er to (lood Ser-ices. he organization used CRM mar.eting to:
a. cross*sell other products
b. design targeted mar.eting communications
c. increase e,,ecti-eness o, its distribution strateg1
d. de,ine customer ser-ice
e$ do all o, these things
ANS: (
he birthda1 cards (a t1pe o, communication) 9ere intended as reminders and than.*1ou cards.
!S: 1 R"#: $$& '(): %1*>
'!: AACS( Communication / (0" Model Customer NAR: (lood Ser-ices
NARR("RCN: Lra,t #oods*%
*ra+t Foo's
Lra,t #oods has created the Lra,t food & family magazine. Cnside each magazine there are recipes<
coupons ,or Lra,t products< and ne9 product ideas. Readers can -ote and pro-ide ratings and ,eedbac.
on their ,a-orite recipes at .ra,t,oods.com. Readers are also encouraged to pro-ide their o9n recipes
that the1 ha-e created. o recei-e the magazine a consumer has to ,ill out a Npro,ileO 9hich as.s such
questions as 9hether or not the1 li.e to coo.< their age and the ages o, their .ids< their gender< and
pre,erred language. Disitors to .ra,t,oods.com are required to sign in to -ote or suggest ideas to the
compan1. Lra,t then sends a Nthan. 1ouO email ,or participating in their Aeb site. hese acti-ities
sho9 that Lra,t is in-ol-ed 9ith its most lo1al customers.
NARR"N4
&%. Re,er to Lra,t:s food & family. Lra,t5s food & family magazine is a component in a program that
allo9s Lra,t to gather in,ormation about< and build a relationship 9ith< a group o, their best customers.
Cn other 9ords< the food & family magazine is a component in Lra,t:s FFFFF program.
a. customer relations mapping (CRM)
b. consumer relationship mar.eting (CRM)
c. internal transactional mar.eting
e. consumer replacement mar.et (CRM)
ANS: 4
A customer relationship management (CRM) program is a compan1*9ide business strateg1 designed
to optimize pro,itabilit1< re-enue< and customer satis,action b1 ,ocusing on highl1 de,ined and precise
customer groups. Lra,t:s food & family magazine is appears to be part o, a CRM e,,ort allo9ing Lra,t
to identi,1 and gather in,ormation about one o, its best customer groups.
!S: 1 R"#: $%& '(): %1*1
'!: AACS( Re,lecti-e hin.ing / (0" Model Strateg1 NAR: Lra,t #oods*%
&$. Re,er to Lra,t:s food & family. Lra,t:s food & family magazine encourages customers to -isit the
compan1:s Aeb site to -ote and pro-ide ratings and ,eedbac. on their ,a-orite recipes. Lra,t then
sends a Nthan. 1ouO email ,or responding to their Aeb site. All o, these acti-ities sho9 that Lra,t is:
a. customer centric
b. product oriented
c. sales oriented
d. customer ser-ice ,ocused
e. goal oriented
ANS: A
Customer*centric is an internal management philosoph1 in 9hich the compan1 customizes its product
and ser-ice o,,ering based on data generated through interactions bet9een the customer and the
compan1.
!S: 1 R"#: $$1 '(): %1*%
NAR: Lra,t #oods*%
&7. Re,er to Lra,t:s food & family. Ahen Lra,t #ood:s emplo1ees share in,ormation about customers
gathered through the food & family initiati-e< the1 are practicing:
a. interaction management
b. .no9ledge management
c. pro,it oriented management
d. lead management
e. per,ormance management
ANS: (
Lno9ledge management is a process b1 9hich customer in,ormation is centralized and shared in order
to enhance the relationship bet9een customers and the compan1.
!S: 1 R"#: $$% '(): %1*%
NAR: Lra,t #oods*%
&8. Lra,t:s food & family. Consumers that recei-e food & family magazine ha-e se-eral contacts 9ith
Lra,t #oods in 9hich there is a sharing o, in,ormation. #or e?ample< to recei-e the magazine readers
must complete a pro,ile. Also< consumers are allo9ed to send in recipes and to -ote and pro-ide
ratings and ,eedbac. on their ,a-orite recipes at .ra,t,oods.com. "ach o, these contacts is considered a:
a. touch point
b. customer interaction point
c. learning point
d. customer*centric point
e. moment o, sharing
ANS: A
ouch points are all areas o, business 9here customers ha-e contact 9ith the compan1 and data can be
collected.
!S: 1 R"#: $$$ '(): %1*$
NAR: Lra,t #oods*%
&;. Re,er to Lra,t:s food & family. o be use,ul to the 9hole organization< the data collected b1 Lra,t
#oods through their food & family magazine initiati-e must be centralized. his process o, centralizing
data ,or a CRM s1stem is termed:
a. data pac.ing
b. data pooling
c. data cleaning
d. data mining
e. data 9arehousing
ANS: "
he process o, centralizing data in a CRM s1stem is re,erred to as data 9arehousing.
!S: 1 R"#: $$7 '(): %1*8
NAR: Lra,t #oods*%
NARR("RCN: =os Angeles Spar.s
Los Angeles Spar,s
he AM(A:s =os Angeles Spar.s is an e?ample o, a sports ,ranchise adopting a CRM approach to
gro9 their ,an base. he Spar.s CRM s1stem< pro-ided b1 so,t9are -endor NSmart (uttonO manages
all email promotions sent to ,ans. Additionall1< the spar.s online ,an site .eeps ,ans in,ormed o,
upcoming games< practices open to the public< team e-ents< and more. he Spar.s also instituted their
ne9 Kome Court Ad-antage program that a9ards season tic.et holders points ,or each seat the1
purchased ,or the season< and that tic.et holders can gi-e to others. he tic.et holders can actuall1 earn
e?tra points b1 telling Spar.s at tic.et rene9al time 9ho5s getting the seats. At the end o, the season<
the top three point*gi-ers recei-e cash prizes. he Spar.s organization is gathering in,ormation on the
tic.et holder as 9ell as the people that attend games 9ith the ,ree tic.ets. As a result< the Spar.s ha-e
seen a sharp rise in late*season tic.et sales this 1ear.
NARR"N4
&>. Re,er to the =os Angeles Spar.s. he in,ormation gathered ,rom tic.et holders 9ill probabl1 become
part o, the organization:s FFFFF list.
a. compiled
b. coo.ies
c. response
d. electronic cash
e. Cnternet research
ANS: C
A response list includes the names and addresses o, indi-iduals 9ho ha-e responded to a similar o,,er
in the past.
!S: 1 R"#: $$8 '(): %1*8
'!: AACS( Re,lecti-e hin.ing / (0" Model Customer NAR: =os Angeles Spar.s
&@. Re,er to the =os Angeles Spar.s. Spar.s: season tic.et holders that ,requent the Spar.s: ,an Aeb site
ha-e spent mone1 to bu1 their season tic.ets and are li.el1 to purchase again. Ahich t1pe o, anal1sis
9ill help Spar.s identi,1 those customers most li.el1 to purchase again because the1 ha-e bought
recentl1J
a. @36%3 customer
b. lo1alt1
c. R#M
d. CRM anal1sis
e. Cohort -alue
ANS: C
Recenc1*,requenc1*monetar1 anal1sis (R#M) identi,ies those customers most li.el1 to purchase again
because the1 ha-e bought recentl1 and bought ,requentl1.
!S: 1 R"#: $$; '(): %1*;
&&. Re,er to the =os Angeles Spar.s. Suppose that the Spar.s management sees si? categories o, ,ans at
their games. he1 ,eel some people at Spar.s games generall1 ,all 9ithin one o, the ,ollo9ing si?
groups: 1) general sports ,ans< %) bas.etball ,ans< $) Spar.s ,ans< 7) general ,ans o, 9omen:s sports< 8)
,ans o, opposing teams< and ;) those see.ing entertainment. 4i-iding customer groups do9n in this
manner is termed:
a. customer data mining
b. customer segmentation
c. customer targeting
d. customer positioning
e. customer centric
ANS: (
Customer segmentation is the process o, brea.ing large groups o, customers into smaller< more
homogeneous groups.
!S: 1 R"#: $$; '(): %1*;
133. Re,er to the =os Angeles Spar.s. he Kome Court Ad-antage !rogram is an e?ample o, a FFFFF
program.
a. re9ard
b. incenti-e
c. co*branding
d. lo1alt1
e. cohort
ANS: 4
=o1alt1 programs re9ard lo1al customers ,or ma.ing multiple purchases.
!S: 1 R"#: $$@ '(): %1*>
'!: AACS( Re,lecti-e hin.ing / (0" Model Strateg1 NAR: =os Angeles Spar.s
131. Re,er to the =os Angeles Spar.s. Some consumers ma1 not 9ant others to pro-ide their names to the
Spar.s organization. his re,lects 9hich concern regarding CRM programsJ
a. e,,ecti-eness
b. e?pense
c. consumer pri-ac1
d. consumer dissonance
e. consumer apath1
ANS: C
Man1 consumers are concerned about databases because o, the potential ,or in-asion o, pri-ac1.
!S: 1 R"#: $71 '(): %1*>
ESSA-
1. Comment on the ,ollo9ing statement: MA CRM c1cle is a rather simplistic customer ser-ice strateg1.M
Cs this an accurate statementJ !ro-ide an alternati-e e?planation o, a CRM c1cle.
ANS:
'n the sur,ace< CRM ma1 seem li.e simplistic customer ser-ice< but customer ser-ice is onl1 a small
part o, a totall1 integrated holistic approach to building customer relationships. he CRM c1cle is
described as a closed*loop s1stem that has no prede,ined start or end. Ct is initiated 9ith the
identi,ication o, customer relationships. Ne?t< a compan1 needs to understand the interactions 9ith its
current customers. Esing this .no9ledge< the compan1 captures customer in,ormation based on the
interactions< uses technolog1 to store this customer in,ormation< and anal1zes the data ,or
pro,itable6unpro,itable segments. 'nce this is done< the in,ormation should be disseminated
throughout the organization.
!S: 1 R"#: $%&*$$1 '(): %1*1
'!: AACS( Communication / (0" Model Strateg1
%. 4escribe the actions o, a compan1 that is re,erred to as ha-ing a customer*centric ,ocus.
ANS:
Companies that implement a CRM s1stem adhere to a customer*centric ,ocus. Customer*centric is an
internal management philosoph1 similar to the mar.eting concept. Ender this philosoph1< the
compan1 customizes its product o,,erings based on data generated through interactions bet9een the
customer and the compan1.
!S: 1 R"#: $$1 '(): %1*%
'!: AACS( Communication / (0" Model Customer / (0" Model Strateg1
$. Ahat is .no9ledge managementJ Ahat t1pe o, companies use .no9ledge managementJ
ANS:
Lno9ledge management is the process b1 9hich learned in,ormation ,rom customers is centralized
and shared in order to enhance the relationship bet9een customers and the organization. Companies
that ha-e a CRM s1stem need to use .no9ledge management.
!S: 1 R"#: $$% '(): %1*%
7. Ko9 can a compan1 measure its success at implementing customer relationship management (CRM)
techniquesJ Ko9 does empo9erment in,luence CRM mar.etingJ
ANS:
he success o, CRM can be directl1 measured b1 the e,,ecti-eness o, the interaction bet9een the
customer and the organization. he more latitude (empo9erment) a compan1 gi-es its representati-es<
the more li.el1 the interaction 9ill conclude in a 9a1 that satis,ies the customers.
!S: 1 R"#: $$% '(): %1*%
8. "?plain the importance o, interactions in a customer relationship management s1stem. Most colleges
and uni-ersities ha-e some ,orm o, CRM s1stem. 4escribe an interaction that occurs at 1our
institution.
ANS:
An interaction is a touch point at 9hich a customer and a compan1 representati-e e?change
in,ormation and de-elop learning relationships. here are se-eral e?amples**probabl1< the best occurs
9hen the student goes through the admission process. he appl1ing student pro-ides in,ormation ,or
the registrar5s o,,ice< and the registrar5s o,,ice pro-ides in,ormation to the student about classes< li-ing
arrangements< ,ood plans< etc.
!S: 1 R"#: $$% '(): %1*%
;. Ahat is a touch pointJ Ri-e t9o e?amples o, touch points.
ANS:
ouch points are all possible areas o, a business 9here customers communicate 9ith that business.
ouch points 9ould include sales< requests ,or in,ormation< complaints< 9arrant1 applications< and
credit applications. Students ma1 de-elop other equall1 correct ans9ers.
!S: 1 R"#: $$$ '(): %1*$
>. Compare and contrast a data 9arehouse and a database.
ANS:
(oth are collections o, data. raditionall1< collected data 9ere stored in separate databases throughout
an organization. A data 9arehouse is a central repositor1 ,or data ,rom all o, the ,unctional areas o, the
organization. he in,ormation can be shared b1 all 9ith the use o, a data 9arehouse.
!S: 1 R"#: $$7 '(): %1*8
'!: AACS( echnolog1 / AACS( Communication / (0" Model 'nline6Computer
@. 4istinguish bet9een a compiled list and a response list. Ahich is most -aluable to mar.etersJ
ANS:
A R"S!'NS" =CS includes the names and addresses o, indi-iduals at home or in the 9or.place 9ho
ha-e responded to an o,,er o, some .ind either b1 mail< telephone< direct*response tele-ision< product
rebates< contests< s9eepsta.es< billing inserts< etc. Response lists tend to be especiall1 -aluable
because past beha-ior is a strong predictor o, ,uture beha-ior.
A C'M!C="4 =CS is de-eloped b1 gathering names and addresses ,rom directories and membership
rosters< usuall1 enhanced 9ith in,ormation ,rom public records< such as census data< auto registrations<
birth announcements< business start*ups< ban.ruptcies< etc. Ct is a method used to build and e?pand a
customer database.
!S: 1 R"#: $$8 '(): %1*8
&. (rie,l1 describe ho9 and 9h1 an organization uses data mining. Ahat are some commonl1 used t1pes
o, data anal1sisJ
ANS:
4ata mining is used to ,ind hidden patterns and relationships in customer data stored in a data
9arehouse. 4ata*mining tools anal1ze signi,icant relationships simultaneousl1 among se-eral
customer dimensions. Commonl1 used t1pes o, data anal1sis include customer segmentation< recenc1*
,requenc1*monetar1 anal1sis< li,etime -alue anal1sis< and predicti-e modeling.
!S: 1 R"#: $$;*$$> '(): %1*;
'!: AACS( Communication / (0" Model Customer / (0" Model 'nline6Computer
13. (rie,l1 describe ,i-e o, the man1 common CRM mar.eting database applications.
ANS:
(1) CAM!ACRN MANAR"M"N: his in-ol-es de-eloping customized products ,or the
appropriate customer segment< pricing these products attracti-el1< and communicating
these o,,ers in a manner that enhances customer relationships
(%) R"ACN ='+A= CES'M"RS: =o1alt1 programs re9ard lo1al consumers ,or ma.ing
multiple purchases.
($) CR'SS*S"== 'K"R !R'4ECS: A database allo9s mar.eters to match product
pro,iles and consumer pro,iles to cross*sell customers other products that match their
demographic< li,est1le< or beha-ioral characteristics.
(7) 4"SCRN ARR""4 MARL"CNR C'MMENCCAC'NS: Esing transaction and
purchase data in addition to personal or demographic in,ormation allo9s mar.eters to
tailor a message.
(8) R"CN#'RC" C'NSEM"R !ERCKAS" 4"CCSC'NS: A database o,,ers mar.eters an
opportunit1 to reach out to customers to rein,orce their purchase decisions.
(;) CN4EC" !R'4EC RCA= (+ N"A CES'M"RS: Esing the pro,ile o, its best
customers< mar.eters can ,ind ne9 customers that loo. li.e its most pro,itable segment.
(>) CNCR"AS" K" "##"CCD"N"SS '# 4CSRC(EC'N CKANN"= MARL"CNR:
Mar.eting databases enable manu,acturers to ad-ise retailers ho9 to better meet
customer needs and ma.e it possible to ser-e customers using direct channels instead o,
the traditional indirect channels.
(@) CM!R'D" CES'M"R S"RDCC": Man1 companies are using CRM mar.eting
techniques to determine ho9 best to tailor products to customers5 needs.
!S: 1 R"#: $$>*$73 '(): %1*>
'!: AACS( Communication / (0" Strateg1
11. +ou ha-e decided 1our business should adopt a CRM mar.eting approach. +ou ha-e in-ested in
computer so,t9are that captures customer data such as name< address< age< education< and li,est1le
characteristics. No9< 1ou ,ind man1 customers are reluctant to pro-ide 1ou 9ith such in,ormation.
Ahat are the general consumer concerns regarding this issue< and ho9 could 1ou address these
concernsJ
ANS:
CRM strategies concern man1 Americans because o, the potential ,or in-asion o, pri-ac1. he sheer
-olume o, in,ormation that is aggregated in databases ma.es this in,ormation -ulnerable to
unauthorized access and use.
Man1 consumers are concerned because the1 .no9 that man1 companies acti-el1 sell huge amounts o,
personal in,ormation to list compilers. #urther< there is 9idespread misunderstanding among
consumers about e?isting pri-ac1 la9s and regulations. #rustrated b1 their lac. o, control< consumers
9ant more opportunities to determine ho9 their personal in,ormation 9ill be used. he1 are also
distressed b1 spam and b1 the amount o, in,ormation collected about them online.
Ri-en these concerns< it is critical that mar.eters remember that their relationships 9ith customers are
built on trust. Enless companies can 9in that trust< the1 9ill be unable to o,,er the bene,its that CRM
can pro-ide.
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'!: AACS( Communication / (0" Model Customer

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Chapter 21Customer Relationship Management (CRM)

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