Deck 14: Building Customer Relationships

Question 1

Initial CRM support efforts should be made using the website because the web developers have the most customer contact.

Answer 1

False

Question 2

The ability to enjoy one-on-one contact with customers has always been a competitive advantage for large firms.

Answer 2

False

Question 3

Customer relationship management means different things to different businesses.

Answer 3

True

Question 4

Evoked sets are features or characteristics of products or services that are used to compare brands.

Question 5

Customer service issues are always identified through a formal review process within a small firm.

Question 6

A consumer's recognition of a problem can be characterized as routine if the problem evolves over time.

Question 7

Addressing a customer by name typically means very little to them.

Question 8

Small businesses must strive to understand post-purchase dissonance among their customers and to manage it effectively.

Question 9

Only three classes of needs-social, psychological, and spiritual-can be connected to behavior through motivations.

Question 10

Post-purchase dissonance and consumer complaints are both directly related to customer satisfaction.

Question 11

In the information search and evaluation stage, the firm's principal objective is to gain market awareness.

Question 12

There must be a company-wide commitment to CRM concept if CRM is to be productive.

Question 13

It is important to keep in touch with a customer and make a sales pitch each time.

Question 14

Consumer needs can be completely satisfied by proper customer relationship management.

Question 15

Regardless of the nature of the business, small firms can gain a competitive edge by providing exceptional customer service.

Question 16

A transactional relationship is an association between a business and a customer that begins or ends with a purchase or a business exchange.

Question 17

Lack of internal expertise is a major justification for using outside CRM services.

Question 18

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.

Question 19

Post-purchase dissonance has been shown to be unrelated to customer satisfaction because it occurs after customers have satisfied their needs.

Question 20

In some situations, a small business owner will have to influence need recognition; in others, he or she may simply be able to react to needs that consumers have identified on their own.

Question 21

Marketers create needs that offer unique motivations to consumers.

Question 22

Diane is a loyal, long-term customer at Burke's Furniture Store. It would be expected that she would

A) be willing to pay more for Burke's Furniture's products.
B) have higher order-processing costs because she purchases so much.
C) potentially spend less as she purchases more products over time.
D) request special discounts and loyalty benefits.

Question 23

In general, opinion leaders are knowledgeable, visible, and have exposure in the mass media.

Question 24

Being closer to their customers allows small business owners to avoid _____, which large firms typically experience as a result of their multiple layers of management.

A) complaints on social media
B) distorted complaints
C) anonymous complaints
D) information distortion

Question 25

Attitudes are forces that organize and give direction to the tension caused by unsatisfied needs.

Question 26

As an owner of a floral design business, Tim's highest priority for the florist's CRM program should be

A) marketing efforts to bring in customers who haven't bought flowers recently.
B) finding the right computer software for an online floral ordering program.
C) determining if existing customers are satisfied with past floral arrangements.
D) identifying how often customers will purchase flowers.

Question 27

Educational level is the single most important determinant of social class.

Question 28

CRM is the business version of

A) the Ten Commandments.
B) the Bill of Rights.
C) the Golden Rule.
D) Maslow's hierarchy of needs.

Question 29

A marketer must determine which motivations the consumer will perceive as acceptable to satisfy a need in a given situation.

Question 30

Because culture drastically affects the behavior patterns and values of people, it has tremendous impact on the purchase and use of products.

Question 31

Regina is so satisfied with her pharmacist that she refers her friends and colleagues, providing a(n) _____ benefit of maintaining relationships with current customers.

A) economic
B) marketing
C) psychological
D) social

Question 32

To establish an effective customer service program, which of the following should be completed first?

A) Customer service quotient
B) Mystery shopper visit
C) Survey on customer attitudes
D) Supplier service analysis

Question 33

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's experiences, as a result, contribute to the firm's CRM

A) organizational culture.
B) customer cost.
C) value equation.
D) customer satisfaction.

Question 34

Attitudes have an indirect impact on consumer behavior.

Question 35

Which of the following economic benefits are associated with maintaining relationships with current customers?

A) Small increases in customer retention can translate into large increases in profits.
B) Existing customers spend less money than new customers.
C) Order processing costs are higher for current customers.
D) All of these are benefits associated with maintaining customer relationships.

Question 36

Every group to which an individual belongs is a reference group for that consumer.

Question 37

Most customer service problems are identified by

A) personal observation.
B) outside consultants.
C) customer complaints.
D) entries in a suggestion box.

Question 38

An investigation of a culture within a narrow definitional boundary (e.g., by age, geographical location) is called perceptual categorization

Question 39

A basic idea forming the foundation of customer loyalty for small firms includes the notion that

A) superior customer service always leads to customer purchases.
B) customer loyalty will mean constant customer satisfaction.
C) small businesses have the potential to provide superior customer service.
D) customer satisfaction is being ignored by large firms.

Question 40

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

A) perceptual categorization.
B) cognitive dissonance.
C) transactional relationship.
D) customer experience management.

Question 41

Bob never purchases bottled water when he is thirsty even if it is available. This behavior indicates that bottled water

A) does not meet Bob's evaluative criteria.
B) increases Bob's cognitive dissonance.
C) is not included in Bob's evoked set.
D) decreases Bob's perceptual categorization.

Question 42

Freida used a discount coupon to purchase a new product. In which of the following categories of the customer profile should this be recorded?

A) Personal information
B) Lifestyle and psychographic data
C) Profile of past responses
D) Transaction data

Question 43

Which of the following statements is true about Yelp?

A) It is an online forum where customers can post reviews.
B) Only negative reviews have any impact.
C) Once a customer posts a negative review, the business is helpless to respond.
D) All of these are true about Yelp.

Question 44

Juan's belief that all low-calorie sodas taste awful is an example of

A) cognitive dissonance.
B) the elimination of an item in an evoked set.
C) perceptual categorization.
D) unilateral indifference.

Question 45

According to consumer decision-making process, _____ is the final stage through which consumers progress.

A) cognitive dissonance
B) evaluative categorization
C) post-purchase evaluation
D) purchase decision

Question 46

June has always believed that the resale furniture store doesn't have quality furniture because the furniture has been used by others. This _____ may cause her to avoid the store and shop at a store specializing in new furniture across town.

A) attitude
B) cognitive dissonance
C) motivation
D) perceptual categorization

Question 47

Although consumer needs are innumerable, they can be identified as falling into all of the following categories EXCEPT

A) motivational.
B) spiritual.
C) physiological.
D) social.

Question 48

CRM software programs are often implemented into _____ first since this area of a company typically generates the greatest amount of customer contact.

A) data management departments
B) sales departments
C) personnel departments
D) customer service departments

Question 49

In which of the following stages of the consumer decision-making process is Josh when he becomes concerned about whether his friends will enjoy the video game he downloaded?

A) Information search and evaluation
B) Need recognition
C) Post-purchase evaluation
D) Purchase decision

Question 50

Information taken from warranty cards would be stored in which of the following categories of a customer profile?

A) Personal information
B) Complaints
C) Lifestyle and psychographic data
D) Transaction data

Question 51

Linda is considering several colleges at which to finish her culinary degree. She is in the _____ stage of the consumer decision-making process.

A) information search and evaluation
B) need recognition
C) post-purchase evaluation
D) purchase decision

Question 52

Julie's preference for a certain style of barbecue developed in her state is the result of which of the following sociological influences?

A) Culture
B) Opinion leaders
C) Reference groups
D) Social class

Question 53

The reason that a group of uniformed people walking down the street playing musical instruments is recognized as a band is the result of

A) characteristic profiling.
B) evaluative criteria.
C) perceptual categorization.
D) problem recognition.

Question 54

Jeff has concluded that his company, which sells professional football merchandise, needs to increase its line of shirts. He is in the _____ stage of the consumer decision-making process.

A) information search and evaluation
B) need recognition
C) post-purchase evaluation
D) purchase decision

Question 55

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 shows that Mary has just proceeded through the _____ stage of consumer decision making.

A) post-purchase evaluation
B) information search and evaluation
C) need recognition
D) purchase decision

Question 56

A customer's e-mail address would most likely be stored in which of the following categories of a customer profile?

A) Personal information
B) Demographics
C) Lifestyle and psychographic data
D) Transaction data

Question 57

The individual processes that give meaning to the stimuli confronting consumers are a(n)

A) motivation.
B) perception.
C) attitude.
D) cognition.

Question 58

When Sarah decided to make an offer on a house, she was in the _____ stage of the consumer decision-making process.

A) information search and evaluation
B) need recognition
C) post-purchase evaluation
D) purchase decision

Question 59

The dress looked so cute in the store window, but after she brought it home, Victoria began having second thoughts about her purchase. Victoria is experiencing

A) post-purchase dissonance.
B) post-purchase satisfaction.
C) cognitive dissonance.
D) post-decisional distress.

Question 60

Attending a prayer breakfast is most likely an attempt to satisfy which of the following categories of need?

A) Physiological
B) Psychological
C) Spiritual
D) Social

Question 61

List and briefly describe the four psychological influences that have the greatest relevance to small businesses.

Question 62

Billy admires firemen. He wants to dress like them, wear a fireman's hat, and pretend to put out fires. For Billy, firemen are a(n)

A) referral group.
B) reference group.
C) perceptual group.
D) associate group.

Question 63

Identify and briefly explain the signposts of extraordinary customer service.

Question 64

List and briefly describe some approaches to improving the effectiveness of customer service efforts.

Question 65

What should entrepreneurs understand about sociological influences on customers?

Question 66

A winery promotes its products by holding wine tastings at the restaurants of outstanding local chefs. The winery is utilizing which of the following sociological influences?

A) Cultures
B) Opinion leaders
C) Reference groups
D) Social classes

Question 67

Match the term with its definition.
a.attitude
b.culture
c.customer experience management (CEM)
d.customer lifetime value (CLV)
e.customer relationship management (CRM)
f.motivations
g.needs
h.opinion leaders
i.perception
j.perceptual categorization
k.reference groups
Goal-oriented forces that organize and give direction to the tension caused by unsatisfied needs

Question 68

Erin often shops at a retail store where her friends shop because of her desire to be affiliated with the group. The friends are exerting _____ power over Erin.

A) expert
B) group
C) referent
D) reward

Question 69

Match the term with its definition.
a.attitude
b.culture
c.customer experience management (CEM)
d.customer lifetime value (CLV)
e.customer relationship management (CRM)
f.motivations
g.needs
h.opinion leaders
i.perception
j.perceptual categorization
k.reference groups
Small groups that an individual allows to influence his or her behavior

Question 70

Match the term with its definition.
a.attitude
b.culture
c.customer experience management (CEM)
d.customer lifetime value (CLV)
e.customer relationship management (CRM)
f.motivations
g.needs
h.opinion leaders
i.perception
j.perceptual categorization
k.reference groups
The individual processes that give meaning to the stimuli confronting consumers

Question 71

What information is typically included in a customer database?

Question 72

Match the term with its definition.
a.attitude
b.culture
c.customer experience management (CEM)
d.customer lifetime value (CLV)
e.customer relationship management (CRM)
f.motivations
g.needs
h.opinion leaders
i.perception
j.perceptual categorization
k.reference groups
A group member who plays a key communication role

Question 73

Behavioral patterns and values that characterize a group of consumers in a target market are called

A) reference groups.
B) cultures.
C) social classes.
D) perceptual categories.

Question 74

Phil Knight, founder of Nike, used which of the following marketing strategies to establish his brand?

A) 80/20 principle
B) Need recognition
C) Five Cool Guys Principle
D) Perceptual categorization

Question 75

How can a customer database be used to identify a company's best customers?

Question 76

How can technology improve customer relationships?

Question 77

Match the term with its definition.
a.attitude
b.culture
c.customer experience management (CEM)
d.customer lifetime value (CLV)
e.customer relationship management (CRM)
f.motivations
g.needs
h.opinion leaders
i.perception
j.perceptual categorization
k.reference groups
Behavioral patterns and values that characterize a group of consumers in a target market

Question 78

Nikita's decision to buy her shoes at the same shop that her boss patronizes is the result of which of the following sociological influences?

A) Cultures
B) Opinion leaders
C) Reference groups
D) Social classes

Question 79

In general, a person can be an opinion leader even if he or she is not

A) knowledgeable.
B) visible.
C) exposed to the mass media.
D) nationally known.

Question 80

Aly'an is a country music band that has a new CD and is gaining a fan base. The band wants to connect with their fans, increase CD sales, and perform more shows. What are tools they could use to drive more people to their website?