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Exam 21: Customer Relationship Management (CRM)

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Question 21

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Subaru of America targeted outdoor enthusiasts when it added an outdoor life section to its Web site,organized by area of interest.The site will serve as a platform for co-marketing and promotional programs and will allow Subaru to gather most overt and covert information.Which of the following provides the most likely reason why Subaru has added this section to its site?

A) to create cognitive dissonance
B) to reduce problems associated with cultural diversity
C) to increase the effectiveness of its channels of distribution
D) to lessen the importance of customer service
E) to design more targeted marketing communications

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Question 22

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Data mining identifies the most profitable customers and prospects. Managers can then design tailored marketing strategies to best appeal to the identified segments. In CRM this is commonly referred to as _____ customer information to facilitate enhanced relationships with customers.

A) manipulating
B) leveraging
C) harvesting
D) converting
E) managing

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Question 23

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Customer relationship management is accomplished by all of the following EXCEPT:

Blood Services As flextime, consulting, telecommuting, and downsizing make it more difficult for people to donate blood at the workplace, Brooklyn/Staten Island Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations. Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February, March, and April. These donors were sent a birthday card with the greeting, "On the anniversary of your life, would you consider saving another's life?" -Refer to Blood Services.The organization developed a _____ list of donors to receive birthday cards.

Which of the following is an example of a channel through which customer data are traditionally gathered?

Blood Services As flextime, consulting, telecommuting, and downsizing make it more difficult for people to donate blood at the workplace, Brooklyn/Staten Island Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations. Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February, March, and April. These donors were sent a birthday card with the greeting, "On the anniversary of your life, would you consider saving another's life?" -Refer to Blood Services.The card sent by the organization is an example of a:

Channel interactions are the relationships a manufacturer has with its distributors.

Los Angeles Sparks The WMBA's Los Angeles Sparks is an example of a sports franchise adopting a CRM approach to grow their fan base. The Sparks CRM system, provided by software vendor "Smart Button" manages all email promotions sent to fans. Additionally, the sparks online fan site keeps fans informed of upcoming games, practices open to the public, team events, and more. The Sparks also instituted their new Home Court Advantage program that awards season ticket holders points for each seat they purchased for the season, that ticket holders can give to others. The ticket holders can actually earn extra points by telling Sparks at ticket renewal time who's getting the seats. At the end of the season, the top three point-givers receive cash prizes. The Sparks organization is gathering information on the ticket holder as well as the people that attend games with the free tickets. As a result, the Sparks have seen a sharp rise in late-season ticket sales this year. -Refer to the Los Angeles Sparks.Sparks' season ticket holders that frequent the Sparks' fan Web site have spent money to buy their season tickets and are likely to purchase again. Which type of analysis will help Sparks identify those customers most likely to purchase again because they have bought recently?

To initiate the CRM cycle,a company must first:

Best Buy's Performance Service Plan (PSP) guarantees products against damage and malfunctioning.All initial purchase contact information is kept in the customer database,along with copies of the PSP.If a customer calls Best Buy with a problem,the representative will have access to all this information and can either help the customer or refer him or her to another representative.The availability of this customer information tends to:

Frequent Fliers If you think George Clooney's character in the movie Up in the Air was pure fiction, think again. Clooney portrayed a frequent flier who enjoyed top-of-the-line perks the likes of which even most "elite" fliers don't experience. That's because he was a member of American Airline's invitation-only ConciergeKey recognition program. Most airlines maintain these unpublished super elite frequent-flier plans, such as Continental's Chairman's Circle and Delta's Executive Partner programs. These programs are reserved for the highest-volume customers in terms of miles flown or highest-value in terms of revenue. You'll have to fly upwards of 300,000 miles or spend $50,000 a year to be invited. -Refer to Frequent Fliers. Airlines have estimated the future value of these elite fliers and found that they are very profitable for their business. What technique did the airlines use to project the future value of these fliers over a period of several years?

Frequent Fliers If you think George Clooney's character in the movie Up in the Air was pure fiction, think again. Clooney portrayed a frequent flier who enjoyed top-of-the-line perks the likes of which even most "elite" fliers don't experience. That's because he was a member of American Airline's invitation-only ConciergeKey recognition program. Most airlines maintain these unpublished super elite frequent-flier plans, such as Continental's Chairman's Circle and Delta's Executive Partner programs. These programs are reserved for the highest-volume customers in terms of miles flown or highest-value in terms of revenue. You'll have to fly upwards of 300,000 miles or spend $50,000 a year to be invited. -Refer to Frequent Fliers.Airlines' commitment to providing premium customer service to its most valuable customers indicates a commitment to:

When Sony Playstation users want to access amenities on the Sony web site,they are required to log in and supply information such as their name,e-mail address,and birth date.They are also given the opportunity to complete a survey that captures much more information about the person and their gaming habits.Sony gathers this information and makes it available internally to better serve the customer.This is an example of a company using:

All of the following are common CRM marketing database applications EXCEPT:

You have decided your business should adopt a CRM marketing approach.You have invested in computer software that captures customer data such as name,address,age,education,and lifestyle characteristics.Now,you find many customers are reluctant to provide you with such information.What are the general consumer concerns regarding this issue,and how could you address these concerns?

_____ involves developing product offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships.

Lesley Owens has limited money to invest in a mailing to people who might be interested in subscribing to a new magazine about making scrapbooks.She wants to mail to those prospects with the highest probability of becoming subscribers.Owens should use a:

Blood Services As flextime, consulting, telecommuting, and downsizing make it more difficult for people to donate blood at the workplace, Brooklyn/Staten Island Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations. Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February, March, and April. These donors were sent a birthday card with the greeting, "On the anniversary of your life, would you consider saving another's life?" -Refer to Blood Services.The information about past donors is stored in the organization's:

Dick's Sporting Goods collects a vast amount of data through its Web site,direct mailings,and retail stores.To be useful,all of these data would be centralized in a(n) :

Los Angeles Sparks The WMBA's Los Angeles Sparks is an example of a sports franchise adopting a CRM approach to grow their fan base. The Sparks CRM system, provided by software vendor "Smart Button" manages all email promotions sent to fans. Additionally, the sparks online fan site keeps fans informed of upcoming games, practices open to the public, team events, and more. The Sparks also instituted their new Home Court Advantage program that awards season ticket holders points for each seat they purchased for the season, that ticket holders can give to others. The ticket holders can actually earn extra points by telling Sparks at ticket renewal time who's getting the seats. At the end of the season, the top three point-givers receive cash prizes. The Sparks organization is gathering information on the ticket holder as well as the people that attend games with the free tickets. As a result, the Sparks have seen a sharp rise in late-season ticket sales this year. -Refer to the Los Angeles Sparks.The Home Court Advantage Program is an example of a _____ program.