Chapter 13: Customer Relationship Marketing

__________ focuses on customer and stakeholder needs, characteristics and behaviour to form beneficial partnerships
1. Customer relationship marketing
2. Frequency marketing
3. Aftermarketing
4. Relationship marketing
5. Conquest marketing
Focusing the firm’s marketing efforts toward the existing customer base is called:
1. customer loyalty programs
2. frequency marketing
3. aftermarketing
4. customer relationship marketing
5. conquest marketing
The main goal of Customer Relationship Marketing is to …
1. profile and target customers effectively
2. engage in frequency marketing
3. develop longer term commitment and trust
4. empowering customers to recruit staff
5. improve aftermarketing skills
Which of the following reasons is not related to why customer relationship marketing increasingly important?
1. Advances in social and technological trends.
2. The need to view customers in an homogenous way.
3. The need to differentiate from the competition.
4. Lifetime value is preferred to one-off transaction.
5. Customers need for value over functional product offerings.
Which of the following reasons is related to traditional marketing and not relationship marketing?
1. Focus on customer retention.
2. High level of customer service.
3. High customer contact.
4. Orientation on benefits.
5. Orientation on features.
Relationship marketing values the customer over a lifetime; therefore each customer has a “potential” lifetime value.
1. True
2. False
The “potential” lifetime value of customers continues for current and lapsed customers.
1. False
2. True
Additional value gained through a long-term relationship with a hairdresser include:
1. personalized information
2. personal attention
3. positive word or mouth referrals
4. commitment to the salon
5. all the above
In relation to the customer relationship ladder what is basic marketing?
1. Maintaining the customer loyalty scheme.
2. Providing discretionary effort.
3. Monitoring the service delivery process.
4. Transactions and service use.
5. Remembering the customers between calls.
In relation to the customer relationship ladder what is reactive marketing?
1. Maintaining the customer loyalty scheme.
2. Setting customer retention goals.
3. Encourages customer feedback.
4. Building trusting relationships.
5. Providing discretionary efforts.
In relation to the customer relationship ladder what is accountable marketing?
1. Including after sales calls to ensure customers are satisfied.
2. Providing discretionary effort.
3. Monitoring the service delivery process.
4. Maintaining the customer loyalty scheme.
5. Remembering the customers between calls.
In relation to the customer relationship ladder what is proactive marketing?
1. Maintaining the proper perspective and loyalty schemes.
2. Providing discretionary effort.
3. Contacting customers from time to time to inform them of improved services.
4. Building trusting relationships.
5. Remembering the customers between calls.
In relation to the customer relationship ladder what is proactive marketing?
1. Maintaining the proper perspective and loyalty schemes.
2. Working with customers to help improve performance.
3. Monitoring the service delivery process.
4. Building trusting relationships.
5. Remembering the customers between calls.
Under which conditions is it no longer worthwhile to develop a relationship?
1. No longer profitable or valuable return on investment.
2. Intensity of the relationship may not be viable for large organisations.
3. Gaining permission of personal/client information is not possible.
4. Customer demands are beyond reasonable.
5. All the above.
Tesco.com has their own relationship management system called “commitment-based segmentation or “loyalty ladder”. Which of the following is not part of the “loyalty ladder”?
1. “logged on”
2. cautionary
3. critical
4. developing
5. established
Tesco.com has identified lifecycle characteristics of their customers. Which of the following identifies the lifecycle characteristics?
1. Recency of purchase, frequency of purchase, household income.
2. Recency of purchase, value of purchase and frequency of purchase.
3. Frequency of purchase, household income, value of purchase.
4. Frequency of purchase, value of purchase, house hold income.
5. Value of purchase, frequency of purchase, recency of purchase.
The ladder of loyalty is made up of:
1. Prospects, Customers, Clients, Supporters, Advocates, Partners, Lapsed Customer
2. Customers, Clients, Supporters, Brand Loyalists, Partners, Lapsed Customer
3. Prospects, Customers, Supporters, Advocates, Brand Loyalists, Lapsed Customer
4. Customers, Clients, Supporters, Brand Loyalists, Advocates, Partners, Lapsed Customers
5. Prospects, Customers, Clients, Supporters, Brand Loyalists, Advocates, Lapsed Customers
Consumers feel loyal to organisations for many reasons; emotional loyalty and instrumental loyalty for example. Which type of loyalty is stronger and longer lasting?
1. Emotional loyalty.
2. Instrumental loyalty.
A Consumer Database or CRM (Customer Relationship Marketing) System is…
1. Electronic database of sales transactions.
2. Electronic system for measuring marketing campaigns.
3. Electronic storage of customer information.
4. Electronic storage system of stock in the database.
5. Electronic system for tracking consumer marketing relationships.
A Consumer Database is a powerful tool for the marketer. Which of the following does Consumer Database not generally do?
1. Capture customer data each time the customer contact the organisation.
2. Accurately segments customers.
3. Tailors communication to fit the needs of the consumers.
4. Captures data for use on a personal level.
5. Provides homogeneous communications to loyal consumers.
Information fed into a Consumer Database can be gained in a variety of ways. Which of the following can not be fed into a Consumer Database?
1. Purchase transactions.
2. Participation in sales promotions.
3. Complaints.
4. Usage of products purchased.
5. Registration on organisation’s website.
________________ is software used to analyse and interrogate large amounts of customer data?
1. Data-mining
2. Data-processing
3. Consumer-mining
4. Consumer-processing
5. None of the above.
The _________________ shows details of how customer data will be used?
1. consumer privacy statement
2. privacy and rights statement
3. privacy policy
4. consumer policy
5. All the above.
Relationship Marketing requires:
1. staff training
2. communication
3. systems management
4. rewards
5. all of the above
At the Partnership level of the loyalty ladder …
1. commitment is high, trust is low and defection is low
2. commitment is high, trust is high and defection is low
3. commitment is low, trust is high and defection is low
4. commitment is low, trust is low and defection is low
5. commitment is high, trust is high and defection is high

Chapter 13: Customer Relationship Marketing

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