BU 230
Customer Relationship Management
Midterms Exam Review (Qns & Ans)
2025
1. Which of the following is NOT a benefit of implementing a
Customer Relationship Management (CRM) system?
a. Improved customer satisfaction
b. Increased operational efficiency
c. Decreased data accuracy
d. Enhanced customer retention
Correct ANS: c. Decreased data accuracy
©/2025
,Rationale: CRM systems improve data accuracy by centralizing
customer information and streamlining processes.
2. What is the primary objective of data mining in CRM?
a. To increase data storage
b. To enhance customer service
c. To extract actionable insights from large datasets
d. To reduce marketing costs
Correct ANS: c. To extract actionable insights from large
datasets
Rationale: Data mining involves analyzing large datasets to
identify patterns and trends that can inform strategic decisions.
Fill-in-the-Blank Questions
3. The process of categorizing customers based on their
behaviors and preferences is known as ________.
Correct ANS: Customer segmentation
Rationale: Customer segmentation allows businesses to tailor
their strategies to different groups of customers.
©/2025
, 4. ________ refers to the continuous evaluation and
improvement of customer interactions and experiences across all
touchpoints.
Correct ANS: Customer experience management
Rationale: Customer experience management focuses on
optimizing every interaction to enhance overall customer
satisfaction.
True/False Questions
5. True or False: A CRM system can help identify the most
profitable customers.
Correct ANS: True
Rationale: CRM systems analyze customer data to identify high-
value customers and tailor strategies to retain them.
6. True or False: Social CRM integrates social media channels
into traditional CRM systems.
Correct ANS: True
Rationale: Social CRM combines social media engagement with
conventional CRM to provide a comprehensive view of customer
interactions.
Multiple Response Questions
©/2025
, 7. Which of the following are key features of a CRM system?
(Select all that apply)
a. Contact management
b. Inventory management
c. Sales forecasting
d. Human resources management
Correct ANS: a. Contact management, c. Sales forecasting
Rationale: CRM systems primarily focus on managing customer-
related data and sales activities, while inventory and HR
management are not core CRM functions.
8. Which strategies are commonly used in customer retention?
(Select all that apply)
a. Personalized marketing
b. Generic mass emails
c. Loyalty programs
d. One-size-fits-all solutions
Correct ANS: a. Personalized marketing, c. Loyalty programs
©/2025
Customer Relationship Management
Midterms Exam Review (Qns & Ans)
2025
1. Which of the following is NOT a benefit of implementing a
Customer Relationship Management (CRM) system?
a. Improved customer satisfaction
b. Increased operational efficiency
c. Decreased data accuracy
d. Enhanced customer retention
Correct ANS: c. Decreased data accuracy
©/2025
,Rationale: CRM systems improve data accuracy by centralizing
customer information and streamlining processes.
2. What is the primary objective of data mining in CRM?
a. To increase data storage
b. To enhance customer service
c. To extract actionable insights from large datasets
d. To reduce marketing costs
Correct ANS: c. To extract actionable insights from large
datasets
Rationale: Data mining involves analyzing large datasets to
identify patterns and trends that can inform strategic decisions.
Fill-in-the-Blank Questions
3. The process of categorizing customers based on their
behaviors and preferences is known as ________.
Correct ANS: Customer segmentation
Rationale: Customer segmentation allows businesses to tailor
their strategies to different groups of customers.
©/2025
, 4. ________ refers to the continuous evaluation and
improvement of customer interactions and experiences across all
touchpoints.
Correct ANS: Customer experience management
Rationale: Customer experience management focuses on
optimizing every interaction to enhance overall customer
satisfaction.
True/False Questions
5. True or False: A CRM system can help identify the most
profitable customers.
Correct ANS: True
Rationale: CRM systems analyze customer data to identify high-
value customers and tailor strategies to retain them.
6. True or False: Social CRM integrates social media channels
into traditional CRM systems.
Correct ANS: True
Rationale: Social CRM combines social media engagement with
conventional CRM to provide a comprehensive view of customer
interactions.
Multiple Response Questions
©/2025
, 7. Which of the following are key features of a CRM system?
(Select all that apply)
a. Contact management
b. Inventory management
c. Sales forecasting
d. Human resources management
Correct ANS: a. Contact management, c. Sales forecasting
Rationale: CRM systems primarily focus on managing customer-
related data and sales activities, while inventory and HR
management are not core CRM functions.
8. Which strategies are commonly used in customer retention?
(Select all that apply)
a. Personalized marketing
b. Generic mass emails
c. Loyalty programs
d. One-size-fits-all solutions
Correct ANS: a. Personalized marketing, c. Loyalty programs
©/2025
