Internet Marketing Integrating Online and Offline Strategies 3rd Edition By Robeerts And Zahay – Test Bank

Chapter 11: Customer Relationship Development and Retention Marketing

MULTIPLE CHOICE

1. Among the arguments for the importance of customer retention are:

a. it costs at least seven times as much to acquire a new customer as it does to retain an existing one.
b. a satisfied customer does not talk about the firm and product.
c. reducing customer defections will increase sales, but not necessarily profits.

ANS: A REF: p. 287

2. ________ is not a way in which relationship marketing differs from transactional

a. Networked organizations instead of hierarchical organizations
b. Long term focus instead of short term perspective
c. Customer dialog instead of isolated marketing research projects

ANS: A REF: p. 290

3. ________ is one of the elements of the Peppers and Rogers CRM model.

a. Analysis
b. Differentiation
c. Involvement

ANS: B REF: p. 293

4. The CRM process:

a. is driven by customer information.
b. makes segmentation obsolete.
c. is useful only for outbound marketing programs.

ANS: A REF: p. 296

5. What are foundations of a CRM program?

a. Sales force automation and customer service
b. Marketing and promotion
c. Customer service and email marketing

ANS: A REF: p. 291

6. Analytical CRM includes:

a. database enhancement.
b. performance measurement.
c. both of the above.

ANS: C REF: p. 296

7. Integrating social media data into tactical CRM programs:

a. carries inherent privacy challenges.
b. has been fully automated.
c. involves collecting easily quantifiable data.

ANS: A REF: p. 297

8. A/An ________ profile can be developed when a person registers on or buys something from a website.

a. anonymous
b. identified
c. statistical

ANS: B REF: p. 302

9. Cisco’s success in customer reactivation depended upon:

a. collecting as much data as possible on each business person.
b. contacting business professionals as individuals.
c. developing registration forms.

ANS: B REF: p. 304

10. The components of customer lifetime value include:

a. all revenue after the first year.
b. growth in amount spent with the enterprise.
c. spending transferred from competitors.

ANS: B REF: p. 287