MCQ on Customer Retention

1. Which of the following ensures that that clients continue to purchase your
goods or services?
a) Customer Retention
b) Customer Satisfaction
c) Customer Service
d) Customer wants

2. Which of the following does NOT indicate a need to improve customer

service (to improve your customer retention program)?

a) Customer satisfaction is your primary management objective

b) The company has employee turnover problems
c) The company does not care about lost customers
d) The company is not consistent about keeping its promises to customers

3. Which choice is part of establishing a customer retention program?

a) Begin work without identifying specific objectives to be accomplished by the program

b) Examine who the customers are and their specific needs.
c) Create the most complicated program possible.
d) Create a culture that does not stimulate customer interest.

4. Customer Retention can be ensured by

a) Catchy Slogans
b) Personalized Services
c) Giving Incentives
d) Offering loans at low rates
5. In RFM Analyses, R refers to recency, which is the:

a) Number of purchases within a specific time period

b) Total expenditure a customer makes with a firm
c) Date of the last purchase
d) Number of days since the last interaction with the company

6. In coding data using RFM Analysis, the “M” would indicate:

a) The Amount that a customer spends on a Single Transaction

b) The number of times the customer order from a company in a particular period of
time
c) The time which tells the last order made by the Customer
d) The group of customers who spent the most amount of money, on average, during a
specific time period

7. The connection between customer loyalty and satisfaction is

a) Proportional
b) Non-Proportional
c) Unaffected
d) None of the above

8. Which of the following best depicts the NPV of the projected stream of
future revenues across the Customer's lifetime purchases?
a) Customer lifetime value
b) Customer profitability analyses
c) Both (a) & (b)
d) All of the above are False
9. Customer lifetime value concepts should consider the short-term, brand-
building marketing activities that assist in increasing customer loyalty.

a) True
b) False
c) Partially True
d) Out of the Context

10. On a survey to determine Net Promoter Score, respondents who respond

with a 9 or 10 are?
a) Promoters
b) Detractors
c) Passives
d) Unenthusiasts

11. Respondents that respond with a 6 or lower on a survey to determine Net

Promoter Score are?

a) Demoters
b) Denigrators
c) Critics
d) Detractors

12. The practice of persuading customers to purchase improved products

when they meant to purchase something of lower value is referred to as

a) Upselling
b) Marketing
c) Cross Selling
d) Channel Marketing
13. What is the term for the sale of an expanded or enhanced version of an
existing product?

a) Upsell
b) Cross-sell
c) Reactivation
d) Referral

14. Customers' profitability, as well as their age, demographics, and

customer satisfaction scores, should all be taken into account when
developing targets using this approach.

a) Benchmark based Target setting

b) Linkage based Target setting
c) Judgement based Target setting
d) Options are Irrelevant

15. A marketer examines current satisfaction scores and decides that the
CSAT should be increased by 5%. This approach of establishing a
satisfaction score is known as:

a) Judgement based Target setting

b) Benchmark based Target setting
c) Linkage based Target setting
d) None of the Above
Answers
1A
2A
3B
4B
5C
6A
7B
8A
9A
10 A
11 D
12 C
13 A
14 B
15 B