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    CRM Section Two

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    youmna yasser ismail
    This document contains practice questions about customer relationship management concepts from a chapter in a textbook. The questions are multiple choice and true/false testing understanding of key CRM topics like the satisfaction-retention curve, customer lifetime value, and customer referral value. An essay question at the end asks about the importance of customer value and value from the customer being aligned for companies.

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    CRM Section Two

    Uploaded by

    youmna yasser ismail
    116 views4 pages
    This document contains practice questions about customer relationship management concepts from a chapter in a textbook. The questions are multiple choice and true/false testing understanding of key CRM topics like the satisfaction-retention curve, customer lifetime value, and customer referral value. An essay question at the end asks about the importance of customer value and value from the customer being aligned for companies.

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    CRM section two

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    This document contains practice questions about customer relationship management concepts from a chapter in a textbook. The questions are multiple choice and true/false testing understanding of key CRM topics like the satisfaction-retention curve, customer lifetime value, and customer referral value. An essay question at the end asks about the importance of customer value and value from the customer being aligned for companies.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    116 views4 pages

    CRM Section Two

    Uploaded by

    youmna yasser ismail
    This document contains practice questions about customer relationship management concepts from a chapter in a textbook. The questions are multiple choice and true/false testing understanding of key CRM topics like the satisfaction-retention curve, customer lifetime value, and customer referral value. An essay question at the end asks about the importance of customer value and value from the customer being aligned for companies.

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    CUSTOMER RELATIONSHIP MANAGEMENT Kumar and Reinartz

    Concept, Strategy, and Tools

    CHAPTER TWO

    Multiple Choice Questions

    1) A factor influencing the shape of the satisfaction-retention curve is:


    a) Aggressiveness of the competition
    b) Degree of switching cost
    c) Level of perceived risk
    d) All of the above

    2) The relationship between satisfaction and retention is:


    a) Symmetric and nonlinear
    b) Asymmetric and nonlinear
    c) Symmetric and linear
    d) Asymmetric and linear

    3) Customer Lifetime Value takes into account


    a) Firm’s number of customers
    b) Firm’s costs and revenue
    c) Firm’s size
    d) Firm’s time on the market

    4) Companies can profit from high Customer Influence Value through


    a) Increased conversion rates of prospects
    b) Reduced usage
    c) Shortened customer lifetime
    d) All of the above

    5) Customer Referral Value


    a) Is intrinsically motivated
    b) Comes for free
    c) Cannot become negative
    d) Cannot reduce acquisition costs

    6) The value of the information that a customer provides a company describes the
    a) Customer Lifetime Value
    b) Customer Influencer Value
    c) Customer Referral Value

    1
    d) Customer Knowledge Value

    True or False Questions

    1) The link between satisfaction and retention is symmetric


    a) True
    b) False

    2) The switching costs associated with airline industry is high


    a) True
    b) False

    3) If two firms operating in two different industries have identical satisfaction levels
    they are likely to have the same relationship between customer satisfaction and
    retention
    a) True
    b) False

    PRACTICE QUESTIONS

    Multiple Choice Questions

    1. A key component of CRM and its application is#


    a. One-sided
    b. Two-sided interaction
    c. Fourth-sided interaction
    d. None of the above

    2. Which of the following observations can be made from the satisfaction-retention


    nonlinear relationship?
    A. Dissatisfaction has a greater impact on retention than satisfaction
    B. Even if the level of satisfaction is high, retention is not guaranteed
    C. If customers are dissatisfied, other products become more enticing
    D. The link is nonlinear in that the impact of satisfaction on retention is greater at the
    extremes
    a. All the above are correct
    b. All except B are correct
    c. Only A and C are correct
    d. All except D are correct

    2
    e. All the above statements are wrong

    3. The present value of future profits generated from a customer over his or her life of
    business with the firm refers to the
    a. Customer Lifetime Value
    b. Customer Influencer Value
    c. Customer Referral Value
    d. Customer Knowledge Value
    e. None of the Above

    True or False Questions

    1. Dissatisfaction has a greater impact on retention than satisfaction


    a. True
    b. False

    2. Repurchase intent is a better measure of studying the satisfaction-retention link


    than repurchase behavior.
    a. True
    b. False

    3. Taking customer satisfaction as a proxy measure for customer loyalty or for


    customer profits is a viable solution.
    a. True
    b. False

    4. It is important for companies not only to have a loyal customer base but also to
    have an active or engaged customer base.
    a. True
    b. False

    Essay question

    I. What constitutes value for the customer and value from the customer? Why
    should companies make sure that they are aligned?

    3
    4

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