Question 1. Susan Lefferts’ company advertises widely. Ms. Lefferts uses business reply cards attached to her company’s magazine ads to build her company’s database. In which of the following ways would Ms. Lefferts most likely u

1. Susan Lefferts’ company advertises widely. Ms. Lefferts uses business reply cards attached to her company’s magazine ads to build her company’s database. In which of the following ways would Ms. Lefferts most likely use the database?

Phil Langston has just ordered a number of expensive executive gifts that he will be sending as an appreciation token to a select few customers from his client database. In which of the following ways is Mr. Langston most likely using his database?

a. To identify prospects

b. To decide which customers should receive a new sales offer

c. To deepen customer loyalty

d. To avoid serious customer mistakes

e. To beat the competition to a sale

2. Royal Caribbean uses its ________ to offer spur-of-the-moment cruise packages to fill all the berths on its ships. It focuses on retired people and single people because they are more able to make quick commitments.

a. advertising

b. database

c. mail catalogs

d. public relations department

e. radio advertising

3. Which of the following is considered to be one of the four problems that can deter a firm from using CRM (customer relationship marketing)?

a. Competitors can often hack into CRM systems.

b. Building and maintaining a customer database requires a large investment.

c. It is very difficult to find and train database employees.

d. Long-term results of such systems are still unproven.

e. Focusing too much on databases separates a company from its customers.

4. Building a database would not be worthwhile for a company in all of the following cases EXCEPT ________.

a. where the product is a one-in-a-lifetime purchase

b. where customers show little loyalty to a brand

c. where the company already has an above average relationship with its customers

d. where the unit sale is very small

e. where the cost of gathering the information is too high

5. All of the following are examples of the perils of CRM EXCEPT ________.

a. implementing CRM before creating a customer strategy

b. the enormous cost that might eventually drain significant profits from the organization

c. rolling out CRM before changing the organization to match

d. assuming more CRM technology is better

e. stalking, not wooing, customers

Marketers from which of the following are most likely to use database marketing?

f. An airline

g. A candy bar manufacturer

h. A grand piano maker

i. A toothpaste manufacturer

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