Question 1

Which of the following uses a past set of occurrences to forecast the likelihood that some other occurrence, such as a response or purchase, will take place in the future?
A)customer manipulation
B)predictive modelling
C)data mining
D)lifetime value analysis

Accepted Answer

Predictive modeling uses past occurrences to make predictions about future events, such as customer responses or purchases. Customer manipulation refers to unethical tactics to influence customer behavior. Data mining is the process of analyzing large amounts of data to uncover patterns and insights. Lifetime value analysis is a method of calculating the estimated value a customer will bring to a company over their lifetime. None of these options specifically involve using past occurrences to forecast the likelihood of future events.

Question 2

Leah wants to develop a mailing list of people who have participated in bicycle rides for charities. She has offered to purchase a list of last year's Ride for Life, which was held to raise funds for cancer research. Which type of list is Leah building?
A)actionable list
B)response list
C)compiled list
D)predictive list

Accepted Answer

The answer of Leah wants to develop a mailing list...

Question 3

Scenario 9-3
To target outdoor enthusiasts, Subaru added an outdoor life section to its website that is organized by area of interest. The site will serve as a platform for co-marketing and promotional programs.
-Refer to the scenario. Which of the following provides the most likely reason that Subaru has added this section to its site?
A)to design a more effective customer outreach program
B)to increase the effectiveness of its channels of distribution
C)to increase the importance of customer service
D)to design more targeted marketing communications

Accepted Answer

By adding an outdoor life section organized by area of interest, Subaru is likely attempting to design more targeted marketing communications in order to reach and appeal to outdoor enthusiasts. This allows for more personalized and relevant marketing messages to be delivered to this specific audience.

Question 4

L.L. Bean Inc. has been reducing the number of catalogues it sends out while increasing its sales and profits. L.L. Bean now identifies customers who have purchased recently and often and have spent considerable money. Such customers are most likely to purchase again. What is L.L. Bean using to identify these customers?
A)predictive data
B)trend data
C)correlation analysis
D)recency-frequency-monetary analysis

Accepted Answer

L.L. Bean is using recency-frequency-monetary (RFM) analysis to identify customers who have recently made frequent and high-value purchases, as these customers are likely to purchase again. RFM analysis is a customer segmentation technique that examines three key customer behaviors: recency (how recently did they make a purchase), frequency (how often do they make purchases), and monetary (how much do they spend). By analyzing these three factors, companies like L.L. Bean can identify their most valuable customers and target them with personalized marketing messages and offers.

Question 5

BMW automobiles has launched an online effort to market its new styles. It hopes to use its database capabilities to capture valuable data on car buyers.BMW plans on cross-referencing new owners with the database generated from this online campaign to see how many names are duplicated. BMW will use these data to forecast which campaigns have the greatest probability of success. Which of the following methods will BMW most likely use to analyze these data?
A)lifetime value analysis
B)future value assessment modelling
C)recency-frequency-monetary analysis
D)predictive modelling

Accepted Answer

Predictive modelling is the best choice for BMW to analyze the data. Predictive modelling involves using statistical techniques and algorithms to analyze data and make predictions about future outcomes. BMW can use this analysis to predict the success of future campaigns based on the data collected from the online effort, enabling it to make data-driven decisions.

Question 6

Which of the following involves developing product offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships?
A)predictive modelling
B)campaign management
C)data mining
D)consumerism

Accepted Answer

Campaign management involves developing and implementing customized marketing campaigns to enhance customer relationships. This includes developing product offerings, pricing them appropriately, and communicating them in a targeted way to the appropriate customer segments. Predictive modelling and data mining are related to analyzing customer data to inform marketing strategies, while consumerism is a broader term referring to the movement towards protecting consumer rights and interests.

Question 7

What is the technique used to suggest that a customer who wanted to buy a $28 shirt would also be a likely prospect for a cigar humidor?
A)predictive modelling
B)customer segmentation
C)market aggregation
D)data interpolation

Accepted Answer

Predictive modelling is the technique used to analyze customer data and predict their behavior or preferences based on past patterns. In this case, the data analysis may have indicated that customers who purchase $28 shirts are more likely to also be interested in purchasing cigar humidors. Therefore, the salesperson can use this information to suggest the additional product to the customer.

Question 8

The Marriot-Hilton hotel chains award points for every dollar spent in one of their hotels. Customers who earn a high number of points are given special privileges that may include upgraded hotel rooms or several free nights. What is the purpose of leveraging this customer information?
A)to retain loyal customers
B)to reinforce competitive promotional decisions
C)to cross-sell other products and services
D)to induce product trial by new customers

Accepted Answer

The purpose of leveraging customer information in this case is to retain loyal customers by offering them special privileges based on the number of points they have earned. This encourages customers to continue staying at the hotel chain and earning more points, leading to customer loyalty and repeat business.

Question 9

Which of the following techniques used to analyze marketing databases considers whether a customer has made a purchase recently as well as how often that customer makes a purchase?
A)recency-frequency-monetary analysis
B)predictive modelling
C)data mining
D)lifetime value analysis

Accepted Answer

Recency-frequency-monetary analysis (RFM analysis) considers the recency (how recently a customer has made a purchase), frequency (how often a customer makes a purchase), and monetary value (how much a customer spends) to segment customers and target them with personalized marketing strategies.

Question 10

The cable industry needs to identify current and future traffic patterns so it can manage the growth of cable systems. Because of high costs, it is undesirable to buy bandwidth before it is needed. It is also time consuming to upgrade a cable system. Furthermore, consumers hate to wait for capacity increases. Therefore, what does the industry use to determine when and where new systems should be implemented?
A)lifetime analysis
B)cross-selling
C)speed of data communications
D)predictive modelling

Accepted Answer

The industry uses predictive modelling to identify current and future traffic patterns and determine when and where new systems should be implemented. Predictive modelling uses statistical algorithms and machine learning techniques to analyze past data and make predictions about future trends. This approach allows the cable industry to plan for future growth and ensure that there is sufficient bandwidth to meet consumer demand without incurring unnecessary costs.

Question 11

The Old Ridley College Foundation raised $80,000 at its "A Taste of Pelee Island," a gala dinner where all proceeds went to support scholarship funds and educational programs at SUNY College at Old Ridley. Attendees were people who had contributed to the scholarship program previously. How would they have been reached?
A)through a compiled list
B)through a response list
C)through a management database
D)through a data warehouse database

Accepted Answer

The answer of The Old Ridley College Foundation raised $80,000...

Question 12

The Blue Jays gave 5,000 Blue Jay season ticket holders a customized digital gift card. Fans will access the card's offerings by using a provided password that takes them to the Jays' website where they can apply for a 10 percent discount for purchases made on the site. The card also features a brief collection of video highlights as well as links to different areas of the Jay' website. What is the team's goal?
A)to cross-sell
B)to reinforce purchase decisions
C)to retain loyal customers
D)to create team awareness

Accepted Answer

The customized digital gift cards were given to 5,000 Blue Jay season ticket holders, indicating that the team's goal is to retain loyal customers. The card's offerings, including a discount and highlights, are aimed at encouraging loyal customers to continue engaging with the Jays and potentially make more purchases on the team's website.

Question 13

Marketing to repeat customers is more profitable than marketing to first-time buyers is a basic assumption of which of the following?
A)customer segmentation
B)predictive modelling
C)data manipulation
D)lifetime value analysis

Accepted Answer

Lifetime value analysis assumes that repeat customers are more profitable than first-time buyers, as they have already shown a willingness to make multiple purchases and therefore have a higher potential value over time. This analysis helps businesses make decisions on how much to invest in retaining existing customers versus acquiring new ones.

Question 14

Which type of list generally includes names and addresses gleaned from directories or membership rosters?
A)predictive list
B)compiled list
C)response list
D)actionable list

Accepted Answer

A compiled list is created using various sources such as directories, phone directories or membership rosters to form a single list. Therefore, it is the best choice for the list including names and addresses gleaned from directories or membership rosters.

Question 15

Best Buy uses CRM to track visitors to its website. This tracking allows the retailer to confidently project the value of its repeat customers through its application of which of the following?
A)customer segmentation
B)customer valuation
C)data manipulation
D)lifetime value analysis

Accepted Answer

Best Buy uses CRM to track visitors to its website in order to perform lifetime value analysis. This analysis allows the retailer to confidently project the value of its repeat customers and make informed decisions about customer retention and acquisition strategies.

Question 16

Tom recently purchased a GE microwave oven using a $50 rebate offer. He filled out the rebate certificate and sent it to an address provided by GE. The rebate certificate contained Tom's full name, his phone number, his address, and some purchase information. Tom has most likely become part of which of GE's lists?
A)compiled lists
B)response lists
C)electronic cash lists
D)Internet research lists

Accepted Answer

Tom has become part of GE's response list, which includes individuals who have responded to a specific offer, in this case, the rebate offer. Response lists are often used for direct mail or email campaigns to target customers who are more likely to make a purchase or respond to an offer. The other options (compiled lists, electronic cash lists, and Internet research lists) do not apply in this scenario.

Question 17

One Internet ad shows a Ford truck driving out of a forest with its engine roaring and mud splattering on the screen. The wipers come on to reveal the Ford "Built Tough" logo, which then recedes to the side of the screen. The ad directs people to a website where they can sign up to receive direct mail from Ford. Ford Canada will combine this database with a database of new F-series truck owners to look for significant patterns and trends. Which of the following best describes what Ford Canada will be using?
A)an information search system
B)knowledge trending
C)data graphing
D)data mining

Accepted Answer

Ford Canada will be using data mining to analyze the database of new F-series truck owners and the people who signed up to receive direct mail. Data mining is the process of discovering patterns, trends, and insights in large datasets.

Question 18

Looking to build up its postpurchase relationships, General Motors recently launched a service whereby GM vehicle owners can sign up to get email service reminders, access information about GM vehicles, and receive special promotions. What is General Motors using to enhance its customer relationships?
A)modelling
B)scoring
C)campaign management
D)data mining

Accepted Answer

General Motors is using campaign management to enhance its customer relationships, as it is launching a service to send emails to customers with service reminders, access to information about GM vehicles, and special promotions. Campaign management is the process of planning, executing, tracking, and analyzing marketing campaigns to improve customer engagement and loyalty.

Question 19

Scenario 9-3
To target outdoor enthusiasts, Subaru added an outdoor life section to its website that is organized by area of interest. The site will serve as a platform for co-marketing and promotional programs.
-Refer to the scenario. This offering of customized products to a customer segment for the purpose of enhancing the auto manufacturer's customer relationships is an example of which of the following?
A)campaign management
B)customer aggregation
C)transaction segmentation
D)data mining

Accepted Answer

This is an example of campaign management, where Subaru is targeting a specific customer segment (outdoor enthusiasts) with tailored content and promotions to enhance customer relationships.

Question 20

To be successful, what must companies do?
A)information formatting
B)identify their best customers
C)data mining
D)predictive modelling

Accepted Answer

To be successful, companies must identify their best customers to tailor their products, services, and marketing strategies effectively, ensuring customer satisfaction and loyalty.

Quiz 9: Customer Relationship Management CRM

Which of the following uses a past set of occurrences to forecast the likelihood that some other occurrence, such as a response or purchase, will take place in the future?

Leah wants to develop a mailing list of people who have participated in bicycle rides for charities. She has offered to purchase a list of last year's Ride for Life, which was held to raise funds for cancer research. Which type of list is Leah building?

Which of the following involves developing product offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships?

What is the technique used to suggest that a customer who wanted to buy a $28 shirt would also be a likely prospect for a cigar humidor?

The Marriot-Hilton hotel chains award points for every dollar spent in one of their hotels. Customers who earn a high number of points are given special privileges that may include upgraded hotel rooms or several free nights. What is the purpose of leveraging this customer information?

Which of the following techniques used to analyze marketing databases considers whether a customer has made a purchase recently as well as how often that customer makes a purchase?

Marketing to repeat customers is more profitable than marketing to first-time buyers is a basic assumption of which of the following?

Which type of list generally includes names and addresses gleaned from directories or membership rosters?

Best Buy uses CRM to track visitors to its website. This tracking allows the retailer to confidently project the value of its repeat customers through its application of which of the following?

To be successful, what must companies do?