Chapter 5 Creating Customer Value Satisfaction and Loyalty

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Dr.G.R.Damodaran College of Science
(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-
accredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 Certified
CRISL rated 'A' (TN) for MBA and MIB Programmes
III MCA [2011-2014]
Semester 5
Elective IV: Customer Relationship Management-554U4
Multiple Choice Questions.
1. CRM stands for___________.
A. Customer Relationship Management.
B. Customer Relations Management.
C. Consumer Relations Management.
D. Consumer Relations Management.
ANSWER: A
2. Which of the following strategies is suited to the Old Economy?
A. Customisation.
B. Personalisation.
C. Improve sales.
D. Increase in profit.
ANSWER: A
3. Which of the following strategies is suited to the New Economy?
A. Retailing.
B. Higher point of sales.
C. Personalisation.
D. Improve in profit.
ANSWER: C
4. Which of the following is NOT TRUE regarding CRM systems?
A. It is actually a set of multiple applications.
B. It can help to understand customer better.
C. It helps to collect demographic data.
D. It is a BI tool.
ANSWER: A
5. Internet is used in Business to ___________.
A. Earn more money.
B. Use latest technology.
C. Speed up business process.
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D. To get updated.
ANSWER: C
6. CRM is ______________.
A. Business centric.
B. Money centric.
C. Profit centric.
D. Customer centric.
ANSWER: D
7. _________ is one of the methods for capturing customer information.
A. Newspaper.
B. Advertisement.
C. Feed back.
D. Surveys.
ANSWER: D
8. E-business software is best defined as to manage _____________.
A. Sell-side e-commerce applications.
B. Internal administrative applications.
C. Buy-side applications.
D. External management.
ANSWER: A
9. is networks that connect people within a company to each other and to the company network.
A. Intranets.
B. Extranets.
C. Bit streams.
D. Internets.
ANSWER: A
10. _______________ is the encompassing term that involves the use of electronic platforms - intranets,
extranets and the Internet - to conduct a company's business.
A. E-commerce.
B. E-marketing.
C. E-procurement.
D. E-business.
ANSWER: D
11. CRM process begins ________________.
A. after sales.
B. after sales and before sales.
C. after purchase.
D. before sales.
ANSWER: B
12. The type of website that engages consumers in interactions that will move them closer to a direct purchase
is known as a______________ website.
A. customer service.
B. interactive.
C. corporate.
D. marketing.
ANSWER: B
13. Delivering what customers want with hassle-free service and superior value is called
__________________.
A. service excellence.
B. operational excellence.
C. continuous excellence.
D. improve goodwill.
ANSWER: A
14. A well built e-business infrastructure is a combination of ________ and _________.
A. structure and stability.
B. safeguards information.
C. understands costumer priorities.
D. all of the above.
ANSWER: D
15. Relationship Marketing focus on_____________.
B. customer satisfaction.
C. customer retention.
D. customer relationship.
ANSWER: C
16. Which manager will manage the complete relationship with each customer?
A. Relationship manager.
B. Personnel manager.
C. HR manager.
D. Customer manager.
ANSWER: A
17. _________ is a evaluation tool that goes beyond financial measures that organization use to improve
process efficiency.
A. PERT.
B. Balance Scorecard.
C. Break Even Analysis.
D. Balance Sheet.
ANSWER: B
18. For choosing the right CRM strategy __________ is used.
A. Criteria Matrix.
B. Selection Matrix.
C. Choice Matrix.
D. Condition Matrix.
ANSWER: B
19. _____________ is used to store customer information.
A. Database.
B. Memory.
C. Sever.
D. Data warehouse.
ANSWER: A
20. Data Mining extracts _____________.
A. hidden information.
B. data.
C. knowledge.
D. information.
ANSWER: A
21. _____________ is a useful data that the customer does not know that he or she is supplying to the
organisation.
A. Active information.
B. Passive information.
C. Present information.
D. Past information.
ANSWER: B
22. One of the methods to find what customers are thinking about the product is _____.
A. Feedback.
B. Questioner.
C. Survey.
D. Suggestions.
ANSWER: C
23. POS means ___________.
A. Point of service.
B. Point of satisfaction.
C. Point of sales.
D. Point of supply.
ANSWER: C
24. Which of the following is not one of the benefits of e-commerce to sellers?
A. E-commerce is a powerful tool for customer relationship building.
B. E-commerce can help to reduce costs.
C. E-commerce increases the net cost per contact.
D. E-commerce offers greater flexibility in meeting customer needs.
ANSWER: C
25. The E-commerce domain that involves business activity initiated by the consumer and targeted to
businesses is known as _____________.
A. Business to Business (B2B).
B. Consumer to Business (C2B)
C. Business to Consumer (B2C).
D. Consumer to Consumer (C2C).
ANSWER: B
26. When preparing a website, designers should ensure that the site enables user- to-user communication. This
design feature is known as__________________.
A. commerce.
B. context.
C. community.
D. connection.
ANSWER: B
27. __________ is used for generating ideas.
A. Brainstorming.
B. Group discussion.
C. Meetings.
D. General discussion.
ANSWER: A
28. CRM always focus on _________ customer needs.
A. satisfy.
B. fulfill.
C. anticipate.
D. service.
ANSWER: C
29. __________ gave a frame work for developing quality customer relationship.
A. Hendry.
B. Taylor.
C. Paul Antony.
D. McKinsy.
ANSWER: D
30. One of the roles of the salesperson is __________.
A. purchasing role.
B. partnering role.
C. promoting role.
D. pricing role.
ANSWER: B
31. For targeted customer contact, _________ of customers are done.
A. segmenting.
B. crossing.
C. combining.
D. mixing.
ANSWER: A
32. Development of _____, made possible for Bank to maintain one to one relationship with customer.
A. instrument technology.
B. communication technology.
C. computer technology.
D. information technology.
ANSWER: D
33. _______________ are one of the treats for establishing retail banking.
A. Competitors.
B. Customer.
C. Foreign players.
D. Local players.
ANSWER: C
34. CRM is ___________ .
A. technology.
B. business philosophy.
C. business process.
D. systematic process.
ANSWER: B
35. __________ is need for successful CRM.
A. Controlling.
B. Directing.
C. Organising.
D. Planning.
ANSWER: D
36. One of the CRM vendors is ___________.
A. Pivotal.
B. Oracle.
C. Crystal.
D. Microsoft.
ANSWER: A
37. For good CRM implementation ____________ is needed.
A. data warehouse.
B. data mart.
C. intelligent database.
D. large server.
ANSWER: C
38. ____________is one of the CRM applications.
A. Billing management.
B. Reporting management.
C. Manufacturing management.
D. Campaign management.
ANSWER: D
39. ________, Size and Speed are the three S associated with Banking in CRM.
A. Satisfaction.
B. Service.
C. Survey.
D. Sales.
ANSWER: B
40. Which is the first private sector bank that gave permission to accept tax payments?
A. Wells Fargo.
B. ICICI.
C. Ambro.
D. HDFC.
ANSWER: D
41. . _____________ management activity that has emerged as core marketing activity for business
operation.
A. Supply.
B. Relationship.
C. Marketing.
D. Sales.
ANSWER: B
42. Customer _____________ is sales to same customer.
A. up sell.
B. down sell.
C. cross sell.
D. top sell.
ANSWER: C
43. Customer ________ is to find new customer.
A. acquisition.
B. retention.
C. acceptance.
D. satisfaction.
ANSWER: A
44. In marketing of Nursing Home at Belgaum, ___________ scale was used for analysis.
A. Likert scale.
B. Semantic scale.
C. Rank order scale.
D. Staple scale.
ANSWER: A
45. Important factor that a patient considers while selecting a nursing home is __________.
A. good care.
B. proper billing.
C. ambulance facilities.
D. life saving drugs.
ANSWER: A
46. Delivering high quality products quickly, error free, and for a reasonable price is ___________.
A. service excellence.
B. operational excellence.
C. continuous excellence.
D. sale excellence.
ANSWER: B
47. Which of the following companies have forward-thinking and begun to use to promote their products and
services?
A. MMA.
B. C2B.
C. B2C.
D. B2B.
ANSWER: C
48. Supply chain management helps an organization in ___________.
A. reducing production costs.
B. increase the production cost.
C. reduce the time it takes to make a product.
D. improves sales.
ANSWER: C
49. An appropriate strategy to achieve timely, accurate, paperless information flow is ____________.
A. efficient replacement .
B. revision of organization processes supported by information systems.
C. efficient store assortments.
D. integrate this activity is integrated into all supply chain planning.
ANSWER: B
50. The correct sequence of an organizations supply chain from a systems perspective is _____________.
A. transformation process, delivery to customers, acquisition of resources.
B. delivery to customers, acquisition of resources, transformation process.
C. transformation process, acquisition of resources, delivery to customers.
D. acquisition of resources, transformation process, delivery to customers.
ANSWER: D
51. CRM is to develop good __________ with customer.
A. relation.
B. revenue.
C. knowledge.
D. maintenance.
ANSWER: A
52. ________________ is the success for any business.
A. Increase in CRM.
B. Increase in revenue.
C. Increase in investment.
D. Decrease in investment.
ANSWER: A
53. CRM is implemented for __________ term.
A. short.
B. long.
C. mid.
D. mean.
ANSWER: B
54. CRM is about ____________ to better understand and serve customer.
A. managing revenue.
B. managing profit.
C. managing customer.
D. managing system.
ANSWER: C
55. _________ synthesis heterogeneous documents in the organization.
A. Server.
B. Records.
C. Files.
D. Database.
ANSWER: D
56. Objective of CRM is to turn customers into __________.
A. competitors.
B. well wisher.
C. partners.
D. promoters.
ANSWER: C
57. Customers _____ has direct impact on company profitability.
A. income.
B. profit.
C. credit.
D. loyalty.
ANSWER: C
58. Which one of the following is NOT a goal of CRM?
A. Better service.
B. Decrease in revenue.
C. Decrease in marketing cost.
D. Retaining customer.
ANSWER: B
59. Which one of the following is NOT a CRM data?
A. Demographic data.
B. Loss data.
C. Purchase data.
D. Sales data.
ANSWER: B
60. Customer life cycle focus on ________the life span of customer with organisation.
A. lengthening.
B. shortening.
C. widening.
D. narrowing down.
ANSWER: A
61. Petroleum sector has _______ type of trade.
A. wholesale.
B. credit.
C. debit.
D. retail.
ANSWER: D
62. Petroleum sector to have CRM uses ___________ type of cards.
A. prepaid
B. post paid
C. top up
D. recharge
ANSWER: A
63. In Petroleum sector to retain the customer ____ type of payment is needed.
A. hot cash
B. debit
C. credit
D. electronic
ANSWER: C
64. ___________ card is used for tracking the movement of track when ever the drivers uses the card.
A. Prepaid
B. Fleet
C. Top up
D. Recharge
ANSWER: A
65. CRM in petroleum sector focus primarily on _______ customer.
A. wholesale
B. retail
C. regular
D. industrial
ANSWER: C
66. CRM will not be effective if company does not have __________.
A. good staffs
B. good office automation
C. good revenue
D. good customer
ANSWER: B
67. CRM is also referred as__________.
A. relationship marketing
B. retail marketing
C. sales marketing
D. customer marketing
ANSWER: A
68. ______is a powerful tool for business.
A. HRM
B. Stress management
C. CRM
D. Time management
ANSWER: C
69. Which one of the following is not useful for understanding customer?
A. Profiling
B. Segmentation.
C. Debit details.
D. Customer valuation.
ANSWER: D
70. Which one of the following method is NOT used for customer interaction?
A. Marketing.
B. Purchasing.
C. Staffing.
D. Selling.
ANSWER: C
71. Value of a product is NOT based on________.
A. service
B. price
C. quality
D. ease of use
ANSWER: B
72. Customer retention is NOT based on ________.
A. maintaining interaction
B. delivering value
C. reacting to customer request
D. high price of product
ANSWER: D
73. CRM takes lot of _______ to implement.
A. time
B. cost
C. machine
D. manpower
ANSWER: A
74. Segmentation of customer leads to _________ marketing.
A. relationship
B. transaction
C. sales
D. customer
ANSWER: B
75. Transaction marketing is for _______ time scale.
A. long
B. short
C. medium
D. extensive
ANSWER: B
76. Transaction marketing focus on _______ sale.
A. single
B. multiple
C. one to one
D. many to many
ANSWER: A
77. Transaction marketing has _________ customer contact.
A. heavy
B. less
C. large
D. moderate
ANSWER: C
78. In transaction marketing, orientation is on _____.
A. product benefits
B. product cost
C. product features
D. product price
ANSWER: C
79. Transaction marketing has _________ customer commitment.
A. more
B. less
C. moderate
D. heavy
ANSWER: B
80. Transaction marketing emphasis on _________ customer service.
A. little
B. more
C. moderate
D. new
ANSWER: A
81. Service, ________ and Speed are the three S associated with Banking in CRM.
A. Satisfaction.
B. Sales.
C. Survey.
D. Sales.
ANSWER: D
82. In relationship marketing, orientation is on _____.
A. product benefits
B. product cost
C. product features
D. product price
ANSWER: A
83. Relationship marketing has _________ customer commitment.
A. more
B. less
C. moderate
D. small
ANSWER: B
84. Relationship marketing emphasis on _________ customer service.
A. little
B. more
C. moderate
D. new
ANSWER: B
85. Relationship marketing is for _______ time scale.
A. long
B. short
C. medium
D. small
ANSWER: A
86. Relationship marketing has _________ customer contact.
A. heavy
B. less
C. small
D. moderate
ANSWER: A
87. In transaction marketing, quality is primary concern of ___________.
A. production department.
B. purchase department.
C. product department.
D. all the department.
ANSWER: C
88. Current value and _________ values are the two types of value in organisation.
A. product
B. price
C. potential
D. process
ANSWER: C
89. _________ is the fuel for CRM engine.
A. Customer profit
B. Customer information
C. Customer goodwill
D. Customer income
ANSWER: B
90. Interaction with customer is done by _______ channel with customer.
A. single
B. multiple
C. one to one
D. one to many
ANSWER: B
91. CRM is implemented by ______ level of organisation .
A. top
B. middle
C. low
D. supervisory
ANSWER: A
92. For having good CRM _______ is needed.
A. heavy investment in IT.
B. heavy investment in shares.
C. heavy investment in infrastructure
D. heavy investment in business
ANSWER: A
93. To induce customer loyalty ________ can be done.
A. retail marketing
B. wholesale marketing
C. club marketing
D. profit marketing
ANSWER: C
94. Clear __________ is needed for relation manager to maintain good CRM.
A. job specification
B. job description
C. job enrichment
D. job analysis
ANSWER: B
95. Importance of CRM at all levels of manager is done by ______ marketing.
A. internal
B. external
C. dynamic
D. static
ANSWER: A
96. CRM changes the organisation to _____ focused organisation.
A. product
B. customer
C. profit
D. goodwill
ANSWER: B
97. CRM helps in tracking ____________.
A. sales opportunity.
B. profit opportunity.
C. marketing opportunity.
D. income opportunity.
ANSWER: C
98. To foster customer relationship organisation needs to ensure that __________.
A. it has well trained staffs
B. it has good revenue
C. it has state of art facilities
D. it has proper goodwill
ANSWER: A
99. _________ is the corner stone of relationship.
A. Good product
B. Delivering value
C. Delivering at right time
D. Low cost
ANSWER: B
100. Relationship manager has to develop _______ term plan towards customer relationship.
A. long
B. short
C. medium
D. mid
ANSWER: A
101. Increasing the retention of customer is done through ____________.
A. not asking questions
B. not getting feedback
C. not replaying
D. responding to queries
ANSWER: C
102. CRM helps in identifying opportunity for ________ selling.
A. product
B. brand
C. cross
D. down
ANSWER: D
103. CRM helps to contact, attract and ________ customer.
A. retain
B. repel
C. annoy
D. infuriate
ANSWER: A
104. CRM has well defined series of _______.
A. job
B. task
C. instruction
D. function
ANSWER: A
105. E-commerce involves the application of ___________.
A. Knowledge Management systems.
B. Product Management systems
C. Services Management systems.
D. All of the above.
ANSWER: A
106. In addition to attracting new customers and creating transactions, the goal of marketing is to ________
customers and grow their business.
A. encourage
B. recognize
C. retain
D. entertain
ANSWER: C
107. With respect to customer satisfaction, which of the following is referred as the key to success?
A. Preference.
B. Up-to-date Supply.
C. Courtesy.
D. Enthusiasm.
ANSWER: C
108. What is not the part of an effective integrated advertising campaign?
A. Precision of message .
B. Cultivation of customer relationships.
C. Impact .
D. Static images only .
ANSWER: C
109. Personal selling is an effective tool to assist the buying process, especially for high priced products.
Personal selling is not commonly used for which of the following purposes?
A. Building up buyer's preferences.
B. Pressurizing the customer into making a decision.
C. To create static images only .
D. Developing customer convictions and feelings about a product and company .
ANSWER: C
110. In E-CRM, customer acquisition means______________.
A. identifying the appropriate customers to target.
B. attracting customers in the target profile to your site and encouraging them to opt-in.
C. encouraging customers to purchase further products through personalized web and e-mail
communications.
D. encouraging customers to purchase more expensive products which may also be in other categories.
ANSWER: C
111. A key CRM technique is to encourage existing customers to recommend friends or colleagues to
purchase. This is called as __________________.
A. up-sell.
B. reactivation.
C. cross-sell.
D. referral
ANSWER: D
112. A key CRM technique is a sub-set of cross-selling, but in this case, selling more expensive products.
This is called as ______________________.
A. reactivation.
B. referral.
C. cross-sell
D. up-sell.
ANSWER: A
113. _________ is to develop good relation with customer.
A. customer relation management
B. customer knowledge
C. customer management
D. customer maintenance
ANSWER: A
114. _________ synthesis heterogeneous documents in the organization.
A. Server
B. Records
C. Files
D. Database
ANSWER: D
115. A method of measuring the effectiveness of online marketing communications, branding metrics are
_______________________.
A. a measure of the profitability of the campaign which compares revenue against costs.
B. the equivalent of offline advertising metrics, i.e brand awareness (aided and unaided), ad recall, brand
favourability and purchase intent.
C. the value of gaining the customer is not just-based on the initial purchase, but the lifetime value (and
costs) associated with the customer.
D. none of the above.
ANSWER: B
116. A method of measuring the effectiveness of online marketing communications, lifetime value measures are
_________.
A. The value of gaining the customer is not just-based on the initial purchase, but the lifetime value (and
costs) associated with the customer.
B. They are the equivalent of offline advertising metrics, i.e brand awareness (aided and unaided), ad recall,
brand favourability and purchase intent.
C. A measure of the profitability of the campaign which compares revenue against costs.
D. None of the above.
ANSWER: C
117. Metric is a ____________________.
A. unit
B. time
C. measurement
D. analysis tool
ANSWER: C
118. BI means ______________.
A. Business Intelligence.
B. Business Information
C. Business Investment
D. Business Inventory
ANSWER: A
119. Which of the following process deals with the concept of designing marketing communications programs
those coordinate all promotional activities to provide a consistent message across all audiences?
A. Integrated marketing communications.
B. Relationship marketing.
C. The marketing mix.
D. Direct marketing.
ANSWER: A
120. Mention the characteristics of good CRM that this system contains.
A. Integration between the customers calls and e-mails.
B. Does not need integration between the customers calls and e-mails.
C. Has never had the customers calls and e-mails integrated.
D. Integration between the customers calls and the headsets the agents wear.
ANSWER: A
121. Data Mining is a ___________ tool.
A. BI
B. AI
C. ERP
D. MIS
ANSWER: A
122. Customers who are signed up for an online service who use it within a define time period, e.g. at least
once a month are described as _________.
A. inactive.
B. dormant.
C. active.
ANSWER: A
123. Which one of the following is not a typical CRM application?
A. Proposal preparation systems.
B. Lead management systems.
C. Call management.
D. Customer records.
ANSWER: A
124. Which of the following is not a characteristic of the business-to-business arena?
A. Large markets.
B. Wide geographic spread.
C. Low average spend per customer.
D. Complex buyer behavior.
ANSWER: C
125. Which of the following links, the organization to its individual customers, employees, suppliers, and other
partners for their mutual long-term benefits?
A. Social responsibility.
C. Suppliers' interests.
D. Producers' interests.
ANSWER: B
126. Which one of the following terms deals with the same product availability in different weights?
A. Proliferation of Labelling.
B. Proliferation of Imaging.
C. Proliferation of Packaging.
D. Proliferation of Brand.
ANSWER: D
127. e-procurement means ______________.
A. Procuring raw materials for smooth running of an organization
B. A software product made of ERP
C. An integrated software that is needed for procuring goods for office use
D. All of the above
ANSWER: D
128. Which of the following is NOT a benefit of direct marketing?
A. Convenience.
B. Interactive.
C. Customer relationship building.
D. Assists client prospecting.
ANSWER: D
129. Inquisitive is the characteristic of which of the following category?
A. Hypocritical mood customer.
B. Complaining mood customer.
C. Objection mood customer.
D. Indifference mood customer.
ANSWER: C
130. Which of the following is a persons pattern of living as expressed in his or her psychographics?
A. Social class.
B. Lifestyle.
C. Culture.
D. Personality.
ANSWER: B
131. The buyer supplier relationship characterized by a close cooperative relationship where the seller adapts
to meet the customer's needs without expecting much adaptation or change on the part of the customer in
exchange is referred to ____________.
A. customer is king .
B. buyer-supplier relationship is transactional .
C. supplier is king.
D. none of the given option.
ANSWER: A
132. Internal strengths and weaknesses are usually referred to as _____________.
A. uncontrollable activities within an organization.
B. controllable activities within an organization.
C. most important for shareholders and stakeholders.
D. important as external opportunities and threat.
ANSWER: B
133. Karen's company just finished meeting with the consultants who delivered a 4-year plan of renovation for
a company. Which part of the strategic landscape has been described in this statement?
A. Strategy assessment.
B. Strategy implementation.
C. Strategy formulation.
D. Strategy initiation.
ANSWER: C
134. When an organization understands the psyche of people at large scale through research and marketing
activities towards organization and product is known as _________.
A. formulation and implementation of an organization's procedures .
B. good-will through a two way communication process.
C. coordination of communications programs public.
D. evaluation of public attitudes and opinion.
ANSWER: D
135. Identify which is NOT the part of Modules of CRM?
A. Advanced technologies.
B. Functional components.
C. Financial components.
D. Channel.
ANSWER: C
136. In which of the following phase of CRM, a business relies on CRM software tools and databases to help
the company proactively identify and reward its most loyal and profitable customers to expand their business
via targeted marketing and relationship marketing programs?
A. Satisfied.
B. Retain.
C. All of the given options.
D. Acquire.
ANSWER: B
137. The changing demographics of global consumers has tremendous implications on the nature of
opportunities for organizations. In view of this which of the following statements in incorrect.
A. Global marketers need to face up to the challenges.
B. This can only be regarded as a major threat to the survival of today's organizations as it will bring
significant costs to them.
C. There has been a reduction in birth rates in many developed economies.
D. Businesses need to develop and market products and services that cater to the changing needs of the
ageing consumers.
ANSWER: B
138. Which of the following is the best example of a people-based service?
A. Vending machines.
B. Airlines.
C. Appliance repair.
D. Movie theater.
ANSWER: C
139. Any single product or service can deliver ______________.
A. same benefits to different customers.
B. same benefits to delighted customers.
C. different benefits to different customers.
D. same benefits to loyal customer.
ANSWER: C
140. It is likely that global competition will become more fiercely intensive because ____.
A. organizations are forming alliances with other market players.
B. competitors are becoming more aggressive.
C. competitors can seemingly access any international market and compete freely.
D. competitors are increasing in size and have more resources to compete.
ANSWER: A
141. Which one of the following options is NOT considered a major area on which customer relationship
management focuses?
A. Expansion of customer base.
B. Reduction of advertising costs.
C. Gaining new customers but no focus on existing ones.
D. Personal information gathering and processing.
ANSWER: C
142. Marketing relationships are__________.
A. intensely personal, like human relationships.
B. intended to deliver short-term customer satisfaction.
C. intended to deliver long-term customer satisfaction.
D. the most important element of the marketing mix.
ANSWER: C
143. Customer relationship management does not move around which of the following?
A. Customer retention.
B. Policies development.
C. Retain customers.
D. Customer satisfaction.
ANSWER: B
144. Which of the following is NOT the general purpose of CRM?
A. Purpose of CRM is better managing customers through the introduction of reliable systems and methods.
B. Purpose of CRM is to enable organizations to service their existing customers more emphatically and
more forcefully.
C. Purpose of CRM is not developing processes and procedures for interacting new customers.
D. All of above given options.
ANSWER: C
145. Service Deficiency is known as__________.
A. product defects.
B. inefficient service standards.
C. incorrect service provision.
D. identified in-sufficiency of service.
ANSWER: D
146. The process of performing activities that increase the value of goods or services to Consumers is known
as________________.
A. value development.
B. value creation.
C. value chain.
D. value addition.
ANSWER: B
147. Incentive schemes, additional services and sentiments based scheme are called_________.
A. concentration on the paying ability of customers.
B. building switching barriers.
C. relationship based pricing schemes.
D. differentiation in price and quality standards.
ANSWER: B
148. Life style is an important variables of which of the following market segmentation?
A. Time segmentation.
B. Geographic segmentation.
C. Psychographics segmentation.
D. Demographic segmentation.
ANSWER: C
149. Customer service facilitation includes EXCEPT___________.
A. divert attention of customer.
B. resolve problem.
C. improve efficiency.
D. provide full information.
ANSWER: A
150. Traditionally, stores have carried inventory to____________.
A. terminate production economies.
B. eliminate forecasting uncertainty.
C. provide better service for customers.
D. prevent strikes or product shortages.
ANSWER: C
151. Supporting customers through the process of selecting, purchasing, and maintaining a product or service
is known as___________.
A. customer loyalty.
B. customer satisfaction.
C. customer services.
D. customer retention.
ANSWER: C
152. Horizon cat food mailed a packet of catnip seed to every person who visited its website. Along with the
catnip seed was a note that advised consumers to visit www.horizon.com if they wanted to create a cat-
friendly garden. This illustration is the best use of which concept for approaching prospect customer?
A. Print advertising.
B. Direct marketing.
C. Personal selling.
D. Public relations.
ANSWER: B
153. Traditional marketing approach is not based on ____________________.
A. gaining new customers.
B. retaining customers.
C. individual transaction.
D. market share.
ANSWER: B
154. Customer who always use your product over competitors product are called as __________.
A. regular customer.
B. loyal customers.
C. new customer.
D. a and b.
ANSWER: B
155. CRM is selling product or service by using _________________.
A. economic inducement.
B. business inducement.
C. psychological inducement.
D. intelligence inducement.
ANSWER: C
156. _________ is performing activities that increase the value of goods or services to consumers.
A. Value addition.
B. Value creation.
C. Value chain.
D. Value support.
ANSWER: B
157. Which of the following is one of the CRM business drivers?
A. Inventory control.
B. Increase revenues.
C. Automation/productivity/efficiency.
D. All of the above.
ANSWER: D
158. Quicker attention and resolution of complaints lead to ________.
A. high profits.
B. low cost.
C. favorable word of mouth.
D. stronger customer relationship.
ANSWER: D
159. ________ is the ability to be used on a large scale, and to be reliably expanded to whatever scale is
necessary.
A. Scalability.
B. Durability.
C. Accountability.
D. Adoptability.
ANSWER: A
160. Why would developing a privacy program be worthwhile for a company?
A. So competitors can't steal its information.
B. To keep company secrets "in house".
C. In order to demonstrate its respect for customer privacy.
D. Privacy policies are required by law.
ANSWER: D
161. Analytical CRM analyzes customer data for following purposes except _________ .
A. design and execution of targeted marketing campaigns to optimize marketing
B. measuring and optimizing customer relationships.
C. delivers personalized and efficient marketing, sales, and service through multi-channel collaboration.
D. data mining.
ANSWER: C
162. Which of the following process deals with the concept of designing marketing communications programs
those coordinate all promotional activities to provide a consistent message across all audiences?
A. Integrated marketing communications.
C. The marketing mix.
D. Direct marketing.
ANSWER: A
163. Which of the following is a good characteristics of CRM?
A. Integration between the customers calls and e-mails.
B. Does not need integration between the customers calls and e-mails.
C. Has never had the customers calls and e-mails integrated.
D. Integration between the customers calls and the headsets the agents wear.
ANSWER: A
164. Which aspect of a message focuses on new information or ideas?
A. Channel.
B. Relationship.
C. Content.
D. Context.
ANSWER: C
165. A specified demographic group for which an advertising message is designed , is know as___________
.
A. Target Audience.
B. Lobbying efforts.
C. Spin.
D. Astroturf.
ANSWER: A
166. Which of the following is heading the activities by which group pressures are brought to bear on
legislatures, the legislative process, and all aspects of the public policy making process?
A. Lobbying.
B. Spin.
C. Astroturf.
D. Press Conferences.
ANSWER: A
167. Which one of the following is not a typical CRM application?
A. Proposal preparation systems.
B. Lead management systems.
C. Call management.
D. Customer records.
ANSWER: A
168. Which of the following is not a characteristic of the business-to-business arena?
A. Large markets.
B. Wide geographic spread.
C. Low average spend per customer.
D. Complex buyer behavior.
ANSWER: C
169. Which of the following links, the organization to its individual customers, employees, suppliers, and other
partners for their mutual long-term benefits?
A. Social responsibility.
B. Relationship marketing .
C. Suppliers' interests.
D. Producers' interests.
ANSWER: B
170. Customer relationship management applications dealing with the analysis of customer data to provide
information for improving business performance best describes by which of the following?
A. Generic customer relationship management applications.
B. Supply chain management applications.
C. Analytical customer relationship management applications.
D. Operational customer relationship management applications.
ANSWER: C
171. The Internet has _____________.
A. empowered consumers and businesses alike.
B. empowered businesses only.
C. empowered intermediaries only.
D. empowered consumers only.
ANSWER: A
172. __________ involves the area of Customer Service and Support.
A. Collaborative CRM.
B. Analytical CRM.
C. Operational CRM.
D. None of the Above.
ANSWER: C
173. Customer demands from suppliers are ________________.
A. good people to handle them.
B. good price and discounts .
C. good environment.
D. all of the above given options.
ANSWER: D
174. _______is one of the factors for evolution on CRM concept.
A. Large product life cycle.
B. Slow product offer.
C. Increase of demand.
D. Economic loss.
ANSWER: A
175. Service Deficiency is known as ______________.
A. product defects.
B. inefficient service standards.
C. incorrect service provision.
D. identified in-sufficiency of service.
ANSWER: D
176. Service, Sales and ______ are the three S associated with Banking in CRM.
A. Satisfaction.
B. Speed.
C. Survey.
D. Sales.
ANSWER: B
177. A_________ site provide the hardware and software that enable Internet communication and
commerce.
A. intranet
B. enabler
C. content
D. transaction
ANSWER: A
178. Within the context of a supply chain, __________ is the ability of a logistics system to satisfy users in
terms of time, dependability, communication and convenience.
B. just-in-time inventory.
C. distribution management.
D. replenishment.
ANSWER: A
179. Which of the following is the description of good sales people?
A. On site support.
B. Problem solver.
C. Organized.
D. Empathetic.
ANSWER: D
180. Operational strategies is referred as __________ level of strategy.
A. highest.
B. lowest.
C. moderate.
D. middle.
ANSWER: B
181. Which of the following processes is MOST critical to the success of the firm?
A. Resource-allocation.
B. Manufacturing and distribution.
C. Payment and billing.
D. Customer support/handling.
ANSWER: D
182. Which of the following refers to the lowest level of strategy?
A. Financial strategies.
B. Marketing strategies.
C. Operational strategies.
D. HR strategies.
ANSWER: C
183. The skill to stimulate someone to take action refers to which of the following?
A. Skill to foresee.
B. Skill to speed up response.
C. Skill to listen.
D. Skill to induce.
ANSWER: D
184. Which of the following is the act of designing the company offering and image to occupy a distinctive
place in the mind of the target market?
A. Segmenting.
B. Positioning.
C. Targeting.
D. Imaging.
ANSWER: B
185. Front Office CRM Systems covering real-time aspects of sales related activity is referred to as
___________.
A. automated marketing.
B. crm customer communications.
C. crm customer services.
D. sales force automation.
ANSWER: D
186. The implementing CRM approach may include ___________.
A. training of employees.
B. a modification of business processes based on customers' needs.
C. an adoption of relevant it systems (including software and may be hardware and/or usage of it service
that enable the organization or company to follow its crm strategy.
D. all of above given options.
ANSWER: D
187. Which one of the following in NOT the propriety of handling handicap customers?
A. Making the customer realize his or her handicap.
B. Try to figure out things they cannot say or explain.
C. Do not show any offence.
D. Handle with special aids for the kind of helplessness.
ANSWER: A
188. One objective of an overall __________ is to put the organization into a position to carry out its mission
effectively and efficiently.
A. strategic management.
B. strategy formulation.
C. corporate strategy.
D. all of above.
ANSWER: C
189. Which ONE of the following is not the requirement for managing customer?
A. Need and want of customers.
B. Measurement of most or least profitability of customer or product.
C. Measurement of least growth potential of product or customer.
D. Knowing which customers will be advocates and supporters.
ANSWER: C
190. A __________ is a software application that enables a user to display and interact With text, images,
and other information for customers or consumers located on a Web page at a website on the World Wide
Web or a local area network.
A. web browser.
B. html.
C. http.
ANSWER: A
191. Which one of the following is NOT a part of sales applications?
A. Compensation.
B. Opportunity and Pipeline Management.
C. Proposal Generation and Management.
D. Budgeting and forecasting.
ANSWER: B
192. MRP is stand for __________.
A. materials resource pricing.
B. material resource planning.
C. material resource placing.
D. man recourse planning.
ANSWER: B
193. Acquiring the Right Customers, based on known characteristics, which drives Growth and increased
profit margin, is a benefit of __________.
A. CRM Process.
B. ECRM.
C. CRM.
D. ECRM process.
ANSWER: A
194. 190. CRM as a discipline that depends on people, process, information and __________.
A. technology.
B. innovation.
C. discovery.
D. ll of the above.
ANSWER: A
195. Which of the following is an element of an organizations internal-environment?
A. Wholesalers.
B. Retailers.
C. Employees.
D. Competitors.
ANSWER: C
196. Which of the following refers to Companies often failure to predict changes, either slow or long range to
at least calculate their impact on their product and customers?
A. Failure to obtain Senior Management Commitment.
B. Poor Communications.
C. Failure to Coordinate.
D. Inability to Predict Environmental Reaction.
ANSWER: D
197. A _____ is an organized collection of comprehensive information about individual customers or
prospects.
A. business database.
B. customer mailing list.
C. customer database.
D. marketing database.
ANSWER: C
198. Supporting customers through the process of selecting, purchasing, and maintaining a product or service
is known as,Select correct option.
A. Customer loyalty.
B. Customer satisfaction.
C. Customer retention.
D. Customer services.
ANSWER: C
199. All of the following statements are principles of communication, EXCEPT _______.
A. communication is a system .
B. communication is static.
C. communication can be intentional or unintentional.
D. communication is a process.
ANSWER: B
200. Operational customer relationship management supports which of the following function?
A. Front Office
B. Customer campaigns
C. Effective interaction
D. Data mining
ANSWER: C
201. Which of the following is NOT a dimension of service quality?
A. Empathy.
B. Assurance.
C. Reliability.
D. Competence.
ANSWER: B
202. Customer Service Culture includes all EXCEPT _________.
A. traits.
B. value.
C. norms.
D. behavior.
ANSWER: A
203. Promoters are those customers who ______.
A. use product occasionally.
B. use product when required.
C. recommend a company to others.
D. use product continuously.
ANSWER: C
204. Companies can gain a strong competitive advantage through having better trained people. This is known
as ______________.
A. personnel differentiation
B. product differentiation
C. personnel training
D. human resources parity
ANSWER: C
205. Which of the following is Not part of marketing mix?
A. Competitors
B. Pricing
C. Promotion
D. Product
ANSWER: A
206. How can complaints provide the firm with great value?
A. They provide a chance to prove the company is right.
B. They can be a source of information for a company.
C. Resolving those ties up important resources.
D. They offer an opportunity to shed bad customers.
ANSWER: B
207. Which of the following is not an offer of major B2B marketers online?
A. Product information.
B. Customer purchasing.
C. Customer support services.
D. Open trading networks.
ANSWER: A
208. _______________ are discussion groups located on commercial online services.
A. Forums
B. Buddy lists
C. Chat-lines
D. Newsgroups
ANSWER: A
209. One critical success factor in conducting E-marketing is to create an ______website.
A. marketing
B. attractive
C. corporate
D. customer
ANSWER: A
210. While maintaining an e-business web site, what element is hard to maintain?
A. Financial services.
B. Mainstream products.
C. Customer Relationship Management.
D. Computer hardware and software.
ANSWER: A
211. E-bay is a good example to define ________.
A. B2B
B. B2C
C. C2C
D. G2C
ANSWER: A
212. _______is one of the factors for evolution on CRM concept.
A. Slow product offer.
B. Economic loss.
C. Educated customer.
D. Decline in customer brand loyalty.
ANSWER: A
213. New products are produced on the bases of _________.
A. customer income
B. competitor
C. customer needs
D. financial position of the firm
ANSWER: A
214. Godrej-Ge appliance have ________ to support CRM.
A. customer call center
B. customer clubs
C. complaint box
D. suggestion box
ANSWER: A
215. In Mckincys frame work, ___ staffs provides close and fast support to customer.
A. centralized
B. decentralized
C. retaining
D. back office
ANSWER: A
216. Which one of the following is NOT a benefit to organisation?
A. Increase in income
B. Increase in marketing cost
C. Decrease in maintenance cost
D. Decrease in inventory handling cost
ANSWER: A
217. Which one of the following is NOT a benefit to customer?
A. Increase in income
B. Decrease in delivery cost
C. Decrease in quality
D. Decrease in stress
ANSWER: A
218. In Mckincys frame work, management expenditure are an _________.
A. investment
B. profit
C. revenue
D. loss
ANSWER: A
219. In Mckincys frame work, detailed specification of management _________ is needed.
A. functions
B. procedure
C. objectives
D. needs
ANSWER: A
220. ______ type of communication is need in between all functional group.
A. Closed
B. Upward
C. Downward
D. Open
ANSWER: A
221. _______ person is the link between the firm and customer.
A. Purchase
B. Distributor
C. Sales
D. Dealer
ANSWER: A
222. Buyer has more loyalty towards _____ person than staff person of the firm.
A. purchase
B. sales
C. distributor
D. dealer
ANSWER: A
223. Partnering role creates ________.
A. profit
B. income
C. revenue
D. value
ANSWER: A
224. Objective of partnering role is to create ______ term relationship with customer.
A. long
B. short
C. mid
D. moderate
ANSWER: A
225. Marketing role of a sales person is to ________sales.
A. decrease
B. upgrade
C. increase
D. widen
ANSWER: A
226. Banking is a _____ type of industry.
A. wholesale
B. retail
C. consumer
D. service
ANSWER: A
227. Banking sector has ______ scope in product differentiation.
A. more
B. less
C. heavy
D. extended
ANSWER: A
228. In bank customers are segmented on the bases of __________.
A. product
B. age
C. education
D. physical appearance
ANSWER: A
229. ________ based marketing is done in banking.
A. Profit
B. Income
C. Age
D. Need
ANSWER: A
230. Which one of the following is a key to build lasting relationships with consumers?
A. Price of the product
B. Need recognition
C. Customer satisfaction
D. Quality of product
ANSWER: A
231. The type of product that results from applying human and mechanical efforts to people or objects refers
to which one of the following options?
A. An idea
B. A service
C. A philosophy
D. A concept
ANSWER: A
232. With what groups do firms conduct concept testing for new products?
A. Suppliers
B. Employees
C. Target customers
D. Focus groups
ANSWER: A
233. The factors such as the buyers age, life-cycle stage, occupation, economic situation, lifestyle, personality
and self-concept that influences buyers decisions refers to which one of the following characteristic?
A. Personal characteristics
B. Psychological characteristics
C. Behavioral characteristics
D. Demographical characteristics
ANSWER: A
234. Following are the variables for the segmentation of international markets EXCEPT ______.
A. geographic factors
B. economic factors
C. cultural factors
D. psychological factors
ANSWER: A
235. E-business stands for _________.
A. Electronic business
B. Electron business
C. Electric business
D. All of the above
ANSWER: A
236. Major source of BI is _________.
A. customer
B. employee
C. income
D. business
ANSWER: A
237. Business intelligence and CRM are _________.
A. apart
B. interlinked
C. not liked
D. process
ANSWER: A
238. ________ is NOT a multiple delivery channel for bank.
A. ATM
B. Telebanking
C. Internet banking
D. Mail banking
ANSWER: A
239. For survival and growth of bank, _________ is needed.
A. increase in profit
B. customer attraction
C. customer annoy
D. better under standing of customer
ANSWER: A
240. Customer services department is responsible of providing services at which time?
A. Before purchase and after purchase
B. At the time of purchase
C. Before purchase
D. After purchase
ANSWER: A
241. Which one of the following statements is TRUE in context of customer relationship management (CRM)?
A. CRM is one of the smallest functions of many business functions
B. CRM is the only principal function of the firm to achieve customer satisfaction
C. A firm can practice marketing without CRM to achieve customer satisfaction
D. CRM is included in all the different business functions to achieve customer satisfaction
ANSWER: A
242. In property development, customer relationship is based on which of the following?
A. Attitudes
B. Money
C. Trust
D. Convenience
ANSWER: A
243. Customized marketing program designed to build long-term relationships with individual customers is
known as __________.
A. One to one marketing
B. Telemarketing
C. Advertising
D. Direct marketing
ANSWER: A
244. Which of the following is a non-personal form of promotion that is delivered through selected media
outlets that, under most circumstances, require the marketer to pay for message placement?
A. Advertising
B. Word of mouth
C. Direct mail
D. Publicity
ANSWER: A
245. The largest medium for direct response is _________.
A. telemarketing
B. broadcast
C. door-to-door
D. mailing
ANSWER: A
246. Customer relationship management affects ______.
A. all individuals, all organizations and all industries
B. all individuals, some organizations and all industries
C. all individuals, all organizations and some industries
D. some individuals, all organizations and all industries
ANSWER: A
247. Departmental stores often conduct surveys to understand the lifestyles of consumers in nearby
neighborhoods. What customer characteristic is being used in this type of segmentation?
A. Benefits sought
B. Psychographic
C. Socioeconomic
D. Demographic
ANSWER: A
248. When the aim of the promotion, while introducing a new consumer product is to achieve high awareness
levels, the firm will most likely make heavy use of which one of the following promotional mix?
A. Publicity
B. Personal selling
C. Sales promotion
D. Advertising
ANSWER: A
249. The target market for cookbooks is predominantly female and over 25 while the readership for comic
books is mainly males between the ages of 15 to20. This is important __________ information for a publisher
to know.
A. psychographic
B. socioeconomic
C. demographic
D. geographic
ANSWER: A
250. Any single product or service can deliver _____________.
A. same benefits to different customers
B. same benefits to delighted customers
C. different benefits to different customers
D. same benefits to loyal customers
ANSWER: A
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