UNIVERSITY OF GHANA (All rights reserved) UGBS SECOND SEMESTER EXAMINATIONS: 2013/2014 BSc, MAY 2014 ECCM 302: CUSTOMER RELATIONSHIP MANAGEMENT (3 CREDITS) TIME ALLOWED: 3HRS IMPORTANT: 1. Please read the questions carefully before answering them since deviation will attract no mark. 2. Answer ALL questions in Section A, and any THREE (3) other questions in Section B Page 1 of 7
SECTION A. Answer all questions (30 marks) 1) Identify a strategy from among the following which is not applicable to CRM. a) Identifying different types of customers b) Developing better relationships with profitable customers c) Locating and enticing customers who will be profitable d) Treating all the customers as equal irrespective of their profitability. 2) The economic value of the customer relationship to the firm expressed on the basis of contribution margin or net profit is called. a) brand equity b) relationship value c) customer value d) profitability of the firm 3) The practice of sales force automation within the sales function is an example of CRM. a) customer-facing front end level b) functional level c) strategic level d) firm level 4) The key components of CRM from a business strategy perspective do not include. a) the process of selecting profitable customers b) shaping the interactions between company and customers c) optimizing current and future value of customers d) focusing on extracting maximum profit from a single transaction 5) The goal of CRM is to. a) Optimize the current and future value of customers b) Maximize revenues c) Increase short-term satisfaction of customers Page 2 of 7
6) Which of the following is a type of CRM: a) Strategic level b) Customer-facing front-end level c) Functional level 7) The key components of the CRM definition from a business strategy perspective include: a) Employees b) Counteractions c) Exchange process d) None of the above 8) The goal of strategic CRM is to: a) Maximize productivity b) Shape interactions between company and customers to maximize their lifetime value c) Achieve competitive advantage 9) A set of processes needed to execute marketing functions like sales force automation or campaign management refers to the perspective of CRM: a) functional b) customer-facing c) strategic d) none of the above 10) The component of CRM strategy characterized by top management belief and commitment that the customer is at the center of activity is: a) Integration and alignment of organizational processes b) Information capture and alignment of technology c) Customer-management orientation d) CRM strategy implementation 11) The two dimensions of the CRM Implementation Matrix are. a) organizational processes and technology b) profitability and behavior c) customer and management d) none of the above Page 3 of 7
12) Marketing-driven CRM implementation is characterized by: a) Activities and processes that constitute analytical CRM b) Activities and processes that constitute operational CRM c) Acquisition and retention aligned with customer needs and values 13) Which function is key to company s ability to maintain proactive relations with customers and hence retain satisfied loyal customers: a) Sales and sales management function b) Marketing function c) Customer service function d) Accounting function 14) The formula for Return on Investment calculation is: a) Sales/Investment X 100% b) Revenues/Investment X 100% c) Cost/Investment X 100% d) Profits/Investment X 100% 15) The costs incurred in a CRM investment are: a) IT costs b) People costs c) Process costs 16) is at the heart of an IT-enabled CRM system a) Contact management b) Operations management c) Customer database d) Computer Telephony Integration 17) People costs in CRM investment refer to: a) Recruitment costs b) Redeployment costs c) Training costs Page 4 of 7
18) Enhancing/modifying service delivery vehicles to match specific customer needs falls under which component of CRM infrastructure a) Partner channel automation b) Sales force automation c) Personalization and content management d) Information delivery 19) Which of these is not an effective way to deal with resistance from employees to CRM strategies a) Listening and encouraging people to talk about what is happening b) Allowing people to make the change and to grieve. c) Trying to make quick fixes to quench the resistance d) Holding regular communication meetings 20) The customer activity measures do not comprise. a) average-inter-purchase time b) share of category requirement c) lifetime duration d) P(Active) 21) Size of wallet and Share of wallet are classified as. a) traditional marketing metrics b) primary customer-based metrics c) popular customer-based value metrics d) strategic customer-based value metrics 22) is defined as the proportion of category value accounted for by a focal firm within its entire base of buyers. a) Individual share of wallet b) Share of category requirement c) Aggregate share of wallet d) Individual share of category requirement 23) The abbreviations of the ABC method stand for: a) Active business customer b) Acquisition-based costing c) Activity-based costing d) Acquisition business costing Page 5 of 7
24) The step of gaining consumer insight in the data-mining process does not include the activity of: a) Training predictive models a) Deploying models b) Comparing models c) Selecting models 25) Which of the following does not belong to a type of row manipulation in the datamining process? a) Elimination b) Aggregation c) Change detection d) Missing value detection 26) is not an activity that is included in the second step of the datamining process. a) Looking for data sources b) Loading the data c) Checking data quality d) Flattening the data 27) Which data type is not included in geodemographic data? a) Socioeconomic status of a region b) Average age c) Type of housing d) All mentioned data types are included 28) Standardizing the data mining process ensures. a) Required quality of results b) Making it a repeatable process c) Quicker training of new employees. Page 6 of 7
29) Which of these is not true regarding data mining: a) Helps to reduce churn b) Increases customer profitability by identifying customers with high growth potential c) Increases marketing costs by more selective targeting d) Provides chance for impressive cost reductions and revenue enhancements 30) Creating new variables based on existing ones is called: a) Transformation b) Derivation c) Elimination d) Definition Section B: Answer any THREE (3) questions in this section 2. Describe briefly the three types of CRM. (20 marks) 3. What are the characteristics of marketing-driven CRM implementation? (20 marks) 4. Briefly describe the "CRM Strategy step in CRM strategy development (20 marks) 5. Briefly describe how retention differs from loyalty. (20 marks) 6. Discuss the following RFM Method, using examples. (20 marks) (a) Recency (b) Frequency (c) Monetary value Page 7 of 7