BUSN258 Customer Relations
Final Exam Review (Qns & Ans)
2025
1. Which of the following best defines customer relationship
management (CRM)?
A. Managing employee performance
B. A strategy to build and maintain long-term customer
relationships
C. A marketing tool for product promotion
D. A process for inventory management
ANS: B. A strategy to build and maintain long-term
customer relationships
Rationale: CRM focuses on fostering relationships with
customers to enhance loyalty and retention.
©2025
,2. What is the main objective of customer segmentation in
business?
A. To reduce marketing costs
B. To group customers based on shared characteristics for
targeted approaches
C. To eliminate non-profitable customers
D. To increase product prices
ANS: B. To group customers based on shared characteristics
for targeted approaches
Rationale: Customer segmentation allows businesses to tailor
marketing strategies effectively.
3. Which of the following is a key principle of effective
customer communication?
A. Providing technical jargon
B. Listening actively and empathetically
C. Relying solely on automated responses
D. Overpromising delivery timelines
ANS: B. Listening actively and empathetically
Rationale: Empathy and active listening improve customer
understanding and satisfaction.
©2025
, 4. What is the role of predictive analytics in customer relations?
A. Tracking competitor strategies
B. Forecasting customer behavior and preferences
C. Designing loyalty programs
D. Managing inventory levels
ANS: B. Forecasting customer behavior and preferences
Rationale: Predictive analytics helps anticipate customer needs
for personalized service.
5. Which metric is commonly used to measure customer loyalty?
A. Net Profit Margin
B. Net Promoter Score (NPS)
C. Revenue Growth Rate
D. Market Share
ANS: B. Net Promoter Score (NPS)
Rationale: NPS gauges customer satisfaction and their
likelihood to recommend the business.
---
©2025
Final Exam Review (Qns & Ans)
2025
1. Which of the following best defines customer relationship
management (CRM)?
A. Managing employee performance
B. A strategy to build and maintain long-term customer
relationships
C. A marketing tool for product promotion
D. A process for inventory management
ANS: B. A strategy to build and maintain long-term
customer relationships
Rationale: CRM focuses on fostering relationships with
customers to enhance loyalty and retention.
©2025
,2. What is the main objective of customer segmentation in
business?
A. To reduce marketing costs
B. To group customers based on shared characteristics for
targeted approaches
C. To eliminate non-profitable customers
D. To increase product prices
ANS: B. To group customers based on shared characteristics
for targeted approaches
Rationale: Customer segmentation allows businesses to tailor
marketing strategies effectively.
3. Which of the following is a key principle of effective
customer communication?
A. Providing technical jargon
B. Listening actively and empathetically
C. Relying solely on automated responses
D. Overpromising delivery timelines
ANS: B. Listening actively and empathetically
Rationale: Empathy and active listening improve customer
understanding and satisfaction.
©2025
, 4. What is the role of predictive analytics in customer relations?
A. Tracking competitor strategies
B. Forecasting customer behavior and preferences
C. Designing loyalty programs
D. Managing inventory levels
ANS: B. Forecasting customer behavior and preferences
Rationale: Predictive analytics helps anticipate customer needs
for personalized service.
5. Which metric is commonly used to measure customer loyalty?
A. Net Profit Margin
B. Net Promoter Score (NPS)
C. Revenue Growth Rate
D. Market Share
ANS: B. Net Promoter Score (NPS)
Rationale: NPS gauges customer satisfaction and their
likelihood to recommend the business.
---
©2025
