Many companies like Coca-Cola, Calvin Klein, Gucci, Tommy Hilfiger, Marlboro, and others have

become leaders in their product categories by understanding Consumer motivations and desires
and creating relevant and appealing images around their products.

One of the most important implementations of competitive strategies is business process re-
engineering (BPR). What is BPR? A fundamental rethinking and radical redesign of business
processes to achieve dramatic improvements in cost, quality, speed and service.

There are different techniques to both initiate and build relationships with customers by using a
combination of online and offline techniques. What is the 'customer life cycle' though? The stages
each customer will go through in a long-term relationship with a supplier

The customer life cycle model has four stages of Select, Acquire, Retain, and Extend and describes
how a long term business relationship with a customer progresses.

Complaints may have different levels of impact on customer retention. Complaints from this viewpoint
may be classified into: Expressed and Resolved, Expressed but not Resolved, Not Expressed but
Resolved, Not Expressed and Not Resolved, All of the Above

Satisfactory post-purchase experience with a product or service given an existing pre-purchase

expectation is called: Customer Satisfaction

Which of the following is not one of the benefits of e-commerce to sellers? E-commerce increases
the net cost per contact

The relationship becomes stabilized, displaying greater levels of trust and commitment between the
partners. This is referred to as: Customer Retention

E-commerce managers aim to deliver the most effective mix of communications to drive traffic to their
e-commerce sites. The different techniques can be characterised as: Offline marketing
communications, Online marketing communications, Digital media channels, All of the above

Different approaches exist for measuring customer value. Four approaches are considered here:
Customer equity management, Customer value analysis, Loyalty monitoring, and Customer
satisfaction.

Services today occupy a vital and growing role in the global market place due to the following
contributing factors: Deregulation and liberalization of trade in services, Service has become a
business imperative, The advent of enabling technologies such as the Internet, All of the above

Frequency marketing is an acknowledgment of the fact that 20 percent of a company’s customers

might account for 80 percent of its business.

Propensity to complain rises in direct relation to Cost and social involvement of the purchase

The customer’s subjective and intangible assessment of the brand, above and beyond its objectively
perceived value: Brand Equity

What is "defection rate?" Percentage of customers who stop using a company or its products or
services in one year

Building, keeping, and growing profitable value-laden relationships with all customers of a company is
called Customer relationship management

Which of the following is NOT the general purpose of CRM? Purpose of CRM is not developing
processes and procedures for interacting new customers

Which one of the following statements is TRUE in context of customer relationship management
(CRM)? CRM is included in all the different business functions to achieve customer
satisfaction
A product Line extension is the use of an established product brand name for a new item in the
same product category.

An FMCG (Fast Food Consumer Goods) marketer is planning to launch an existing brand name into a
new product category. Which brand development strategy is being implemented? Line extension

Are key building blocks for developing and managing customer relationships Customer value and
customer satisfaction

Kristen purchased a chair and ottoman from a furniture store. After only six months, the fabric started
to fade and tear in some spots. While she didn't spend much money on this chair, she did expect it to
last longer than that. Kristen most likely experienced Dissatisfaction

Marketing problems caused by inseparability include all of the following except for Service
standardization and quality control are difficult to achieve

Digital products, such as software, music, digitized images, and electronic games are a great fit for
consumer focused (B2C) e-commerce because Electronic distribution is more efficient than
alternative distribution channels for digital products

Sellers encourage buyers to purchase increased quantities, to try other products, to engage with other
added value services, and to vary delivery times and quantities. Which phase in the customer
relationship lifecycle is this referring to? Customer acquisition

What should the salesperson and the sales manager accomplish during an evaluation? Provide
constructive feedback, Provide motivation to perform well, Develop and communicate clear standards,
All of the above

The core benefits of e-CRM are: Extended customer relationships, Competitive services delivering
high value, Improved product and service delivery processes, Better customer knowledge and insight,
All of the Above

The World Travel and Tourism Council estimates that business travel from India will be worth Rs.
46,450 crore by 2013 year

Companies can build interest and enthusiasm by using databases to remember customer
preferences. This strategy helps to which of the following? Deepen customer loyalty

The time length of the customization varies widely: Six to ten weeks being typical and depends
on a substantial number of factors such as size of the project, current availability of employees,
technical problems related to implementation, mid stream workflow and rules

CRM is a fundamental facet of an organization, encompassing the philosophy and mission of

organized business that is engaged with a well-knit customer-focused knowledge base and pervasive
communications. True

By measuring a company's customer service effectiveness, weaknesses can be identified so

corrections can be implemented. True

E-CRM must address customer optimization in different dimensions, these are: Acquisition,
Expansion, Retention, All of the Above

The approach would eliminate or minimize the gap between the organisation and its customers known
as Customer Centric Approach

Occurs when the customer stops buying or using the services. Exit

Customer Value Analysis (CVA) was devised by: Bradley Gale

CRM allows an organization to accomplish all of the following, except: Complicate marketing and
sales processes

Front Office CRM Systems covering real-time aspects of sales related activity is referred to as: Sales
Force Automation

Mass marketing epitomized by Henry Ford

Customer Acquisition is to find new customer.

State whether the following statement is true or false. Mass production quickly became the dominant
form of manufacturing around the world. True

Is the customer’s tendency to stick with the brand above and beyond the customer’s objective and
subjective assessments of the brand. Retention Equity

Mass marketing creates the largest potential market, which leads to lowered costs. True

The term “e-Commerce”, often used interchangeably with IBM’s coined term “e-Business”. TRUE

EMA role is to improve efficiency of marketing staff that in turns improves company’s marketing
processes. EMA means Enterprise Marketing Automation

Respondents rate these three stages as most important to success among the 8 project stages.

Application servers drive the pure Internet CRM applications. True

The final group of business products is Supplies and Services These include paper, pencils,
lubricants, paint, nails and brooms.

Supply chain management helps an organization in Reduce the time it takes to make a product

Promotion in Marketing means Selling the products through various means

Objective of CRM is to Increase marketing efficiency and effectiveness. It is cooperative and

collaborative processes that help in reducing transaction costs and overall development costs of the
company. Objective of CRM is to turn customers into Partners

Marketing evaluation and Control processes are necessary to understand the efficiency and
effectiveness of marketing activities and how both could be improved.

While satisfaction leads to retention, dissatisfaction leads to the stage of: Attrition

E-commerce actually began in the which year. 1970