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| 1 | |
CRM is based on the philosophy that retailers can increase their profitability by: |
| | A) | providing better assortments |
| | B) | expanding their services |
| | C) | extending hours of operation |
| | D) | building relationships with their better customers |
| | E) | all of the above |
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| 2 | |
Neiman Marcus has information about a customer that includes what she has purchased, the colors, sizes and styles, and how she has responded to recent promotions. This information is collectively called: |
| | A) | responsive information |
| | B) | customer information |
| | C) | demographics |
| | D) | preferential database |
| | E) | customer database |
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| 3 | |
What is the first step in the CRM process? |
| | A) | analyzing data |
| | B) | developing CRM programs |
| | C) | constructing a customer database |
| | D) | identifying the target customers |
| | E) | implementing programs |
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| 4 | |
When consumers ask a retailer not to use their personal information, they are: |
| | A) | opting in |
| | B) | opting out |
| | C) | choosing/consenting |
| | D) | declining public domain statutes |
| | E) | notifying consumer information service |
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| 5 | |
If a U.S. retailer wants to conform to the European policies concerning how customer information is collected, it should adopt which type of policy? |
| | A) | opt in. |
| | B) | opt out. |
| | C) | opt private. |
| | D) | opt EC. |
| | E) | It should not have a policy. |
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| 6 | |
After Petunia used ____________________ to analyze patterns in her CD sales, she realized that older buyers shopped during the earlier part of the day and younger shoppers visited her shop during the evening. |
| | A) | data cloning |
| | B) | data mining |
| | C) | redress analysis |
| | D) | strategic analysis |
| | E) | information drafting |
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| 7 | |
Since Gina had the opportunity to utilize __________________, she now places pizza cutters next to the pepperoni, refrigerated croissant dough next to the butter, and the birthday candles next to the cards and the cake mixes. |
| | A) | allocation analysis |
| | B) | computer analysis |
| | C) | merchandising analysis |
| | D) | market basket analysis |
| | E) | location analysis |
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| 8 | |
What is wrong with the 80-20 scheme? |
| | A) | It doesn't consider the differences among the 80% of customers in the "rest" segment. |
| | B) | Customers who are labeled could change and future advertising misses them. |
| | C) | It is too broad to segment customers in this way. |
| | D) | It doesn't consider the differences between 80% and the 20%. |
| | E) | It doesn't break down the variables within the remaining 20%. |
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| 9 | |
Which of the following does NOT describe customer relationship management programs? |
| | A) | It helps retailers to retain the best customers. |
| | B) | It helps retailers to convert good customers to high-LTV customers. |
| | C) | It helps retailers to get rid of unprofitable customers. |
| | D) | It helps retailers to identify customers according to their current and future profit potentials. |
| | E) | It helps retailers to convert unprofitable customers to the best customers. |
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| 10 | |
Dean consistently shops for his clothes through catalogs and always finds the ideal fit because he orders two of the same product in different sizes and returns the item that does not fit. He's been doing this for free for years, but recently he noticed he was being charged for the many returns. Which of the following best describes what the catalog retailer is doing? |
| | A) | cutting back on mail outs |
| | B) | getting the lead out |
| | C) | increasing their costs |
| | D) | soliciting feedback |
| | E) | cutting off services |
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