MISY 5380 COMPREHENSIVE ANSWERS AND
QUESTIONS SET A+
✔✔Different effectiveness measures are needed for company CRM efforts focusing on
acquiring new customers than efforts focusing on cross-selling and up-selling to current
customers. T/F - ✔✔True
✔✔Defection curves:
A. depict the relationship between satisfaction and retention.
B. depict the relationship between company profits and changes in customer defection
rates.
C. depict the relationship between types of contractual organizations and their retention
rates.
D. allow companies to rate each element of service and its importance to customers.
E. rank service attributes in order of importance in gaining and losing customers. -
✔✔B. depict the relationship between company profits and changes in customer
defection rates.
✔✔The survival rate is the number of customers remaining between the formation of a
cohort and any point in time afterward. T/F - ✔✔True
✔✔An acquisition/defection matrix indicates
A. who a company is losing their customers to and gaining them from.
B. the relationship between satisfaction scores and retention.
C. which type of customer is entering and leaving.
D. which VAN members are short vs. long term.
E. none of the above - ✔✔A. who a company is losing their customers to and gaining
them from.
✔✔Company "3E" CRM effectiveness measures consist of company efficiency,
effectiveness and employee behavior. T/F - ✔✔True
, ✔✔Useful measures of customer acquisition do NOT include which of the following?
A. yield rate
B. capture rate
C. share of category
D. conversion rate
E. conversion efficiency - ✔✔C. share of category
✔✔Critical incident analysis
A. focuses on a consumer's holistic feelings toward the organization.
B. provides the prime reason for purchase at that time.
C. is built upon specific items or a single behavior.
D. is the basis for brand extension.
E. is understanding what prompted the suggestion to purchase. - ✔✔C. is built upon
specific items or a single behavior.
✔✔Company 3E measures would NOT include which of the following?
A. first contact resolution
B. revenue per CRM dollar
C. time to resolution
D. time spent in generating targeted promotions
E. all are 3E measures - ✔✔E. all are 3E measures
✔✔Customer Equity is the CLV
A. of all the company's individual customers.
B. of all the company's customers less company expenditures.
C. of all the company's customers less company expenditures discounted to a net
present value.
D. plus brand equity.
E. plus brand value. - ✔✔C. of all the company's customers less company expenditures
discounted to a net present value.
✔✔Customer equity can be defined as the sum of CLVs of all the company's individual
customers less company expenditures discounted to a net present value. T/F - ✔✔True
✔✔As companies lose customers, their customer satisfaction scores fall. T/F - ✔✔False
✔✔The maintenance ratio is the cost involved in maintaining customer relationships
divided by total CRM expenditures. T/F - ✔✔False
QUESTIONS SET A+
✔✔Different effectiveness measures are needed for company CRM efforts focusing on
acquiring new customers than efforts focusing on cross-selling and up-selling to current
customers. T/F - ✔✔True
✔✔Defection curves:
A. depict the relationship between satisfaction and retention.
B. depict the relationship between company profits and changes in customer defection
rates.
C. depict the relationship between types of contractual organizations and their retention
rates.
D. allow companies to rate each element of service and its importance to customers.
E. rank service attributes in order of importance in gaining and losing customers. -
✔✔B. depict the relationship between company profits and changes in customer
defection rates.
✔✔The survival rate is the number of customers remaining between the formation of a
cohort and any point in time afterward. T/F - ✔✔True
✔✔An acquisition/defection matrix indicates
A. who a company is losing their customers to and gaining them from.
B. the relationship between satisfaction scores and retention.
C. which type of customer is entering and leaving.
D. which VAN members are short vs. long term.
E. none of the above - ✔✔A. who a company is losing their customers to and gaining
them from.
✔✔Company "3E" CRM effectiveness measures consist of company efficiency,
effectiveness and employee behavior. T/F - ✔✔True
, ✔✔Useful measures of customer acquisition do NOT include which of the following?
A. yield rate
B. capture rate
C. share of category
D. conversion rate
E. conversion efficiency - ✔✔C. share of category
✔✔Critical incident analysis
A. focuses on a consumer's holistic feelings toward the organization.
B. provides the prime reason for purchase at that time.
C. is built upon specific items or a single behavior.
D. is the basis for brand extension.
E. is understanding what prompted the suggestion to purchase. - ✔✔C. is built upon
specific items or a single behavior.
✔✔Company 3E measures would NOT include which of the following?
A. first contact resolution
B. revenue per CRM dollar
C. time to resolution
D. time spent in generating targeted promotions
E. all are 3E measures - ✔✔E. all are 3E measures
✔✔Customer Equity is the CLV
A. of all the company's individual customers.
B. of all the company's customers less company expenditures.
C. of all the company's customers less company expenditures discounted to a net
present value.
D. plus brand equity.
E. plus brand value. - ✔✔C. of all the company's customers less company expenditures
discounted to a net present value.
✔✔Customer equity can be defined as the sum of CLVs of all the company's individual
customers less company expenditures discounted to a net present value. T/F - ✔✔True
✔✔As companies lose customers, their customer satisfaction scores fall. T/F - ✔✔False
✔✔The maintenance ratio is the cost involved in maintaining customer relationships
divided by total CRM expenditures. T/F - ✔✔False
