MKT 320 - Exam 3 || 100% Error-free Answers.
customer relationship management program correct answers The set of activities designed to
identify and build the loyalty of the retailer's most valuable customers.
share of wallet correct answers the percentage of the customer's purchases made from a
particular retailer
customer loyalty correct answers customers are committed to purchasing merchandise and
services from the retailer and will resist the activities of competitors attempting to attract their
patronage
- emotional connection
- all elements in retail mix contribute to the development of this
what are the 2 most effective methods for developing loyalty? correct answers - personal
attention
- customer service
CRM process correct answers 1. Collecting customer data
2. Analyzing the customer data and identifying target customers
3. Developing CRM programs
4. Implementing CRM programs
first step in the CRM process correct answers collecting customer data (construct a data
warehouse)
What does a data warehouse contain? correct answers - transactions
- customer contacts
- customer preferences
- descriptive information
four approaches that store based retailers use to overcome the problem of in-store purchases?
correct answers 1. ask customers for identifying info
2. connect internet and store purchasing data
3. offer frequent shopper programs
4. place rfid chips on merchandise
frequent shopper programs correct answers aka loyalty programs
- programs that identify and provide rewards to customers who patronize a retailer
cookies correct answers small files stored on a customer's computer that identify customers when
they return to a website
opt in correct answers A customer privacy issue prevalent in the European Union. Takes the
perspective that consumers "own" their personal information. Retailers must get consumers to
explicitly agree to share this personal information
, opt out correct answers A customer privacy issue prevalent in the United States. Takes the
perspective that personal information is generally viewed as being in the public domain and
retailers can use it in any way they desire. Consumers must explicitly tell retailers not to use their
personal information.
second step in CRM process correct answers analyzing customer data and identifying target
customers
what are the 2 objectives for analyzing the customer database? correct answers 1. identifying the
retailers best customers
2. using analytical methods to improve decisions made by retail managers
customer lifetime value correct answers The expected contribution from the customer to the
retailer's profits over his or her entire relationship with the retailer
-use past behaviors to forecast this
retail analytics correct answers applications of statistical techniques and models that seek to
improve retail decisions through analysis of customer data
data mining correct answers an information processing method that relies on search techniques to
discover new insights into the buying patterns of customers, using large databases
market basket analysis correct answers Specific type of data analysis that focuses on the
composition of the basket (or bundle) of products purchased by a household during a single
shopping occasion.
- computer program counts the number of times two products get purchased at the same time
2 objectives of building CRM through frequent shopper programs correct answers 1. build a data
warehouse that links customers data to their transactions
2. encourage repeat purchase behavior and loyalty
80/20 rule correct answers 80 percent of the sales or profits come from 20 percent of the
customers
customer pyramid correct answers platinum, gold, iron, lead
Platinum Segment—Customer Pyramid correct answers top 25%, most profitable and loyal
customers who are typically not overly concerned about price
gold segment - customer pyramid correct answers buy a significant amount of merchandise from
the retailer, they are not as loyal as platinum customers and patronize some of the retailers
competitors, profitability less than platinum
iron segment - customer pyramid correct answers purchase modest amount of merchandise, but
spending levels, loyalty and profitability are not substantial enough for special treatments
customer relationship management program correct answers The set of activities designed to
identify and build the loyalty of the retailer's most valuable customers.
share of wallet correct answers the percentage of the customer's purchases made from a
particular retailer
customer loyalty correct answers customers are committed to purchasing merchandise and
services from the retailer and will resist the activities of competitors attempting to attract their
patronage
- emotional connection
- all elements in retail mix contribute to the development of this
what are the 2 most effective methods for developing loyalty? correct answers - personal
attention
- customer service
CRM process correct answers 1. Collecting customer data
2. Analyzing the customer data and identifying target customers
3. Developing CRM programs
4. Implementing CRM programs
first step in the CRM process correct answers collecting customer data (construct a data
warehouse)
What does a data warehouse contain? correct answers - transactions
- customer contacts
- customer preferences
- descriptive information
four approaches that store based retailers use to overcome the problem of in-store purchases?
correct answers 1. ask customers for identifying info
2. connect internet and store purchasing data
3. offer frequent shopper programs
4. place rfid chips on merchandise
frequent shopper programs correct answers aka loyalty programs
- programs that identify and provide rewards to customers who patronize a retailer
cookies correct answers small files stored on a customer's computer that identify customers when
they return to a website
opt in correct answers A customer privacy issue prevalent in the European Union. Takes the
perspective that consumers "own" their personal information. Retailers must get consumers to
explicitly agree to share this personal information
, opt out correct answers A customer privacy issue prevalent in the United States. Takes the
perspective that personal information is generally viewed as being in the public domain and
retailers can use it in any way they desire. Consumers must explicitly tell retailers not to use their
personal information.
second step in CRM process correct answers analyzing customer data and identifying target
customers
what are the 2 objectives for analyzing the customer database? correct answers 1. identifying the
retailers best customers
2. using analytical methods to improve decisions made by retail managers
customer lifetime value correct answers The expected contribution from the customer to the
retailer's profits over his or her entire relationship with the retailer
-use past behaviors to forecast this
retail analytics correct answers applications of statistical techniques and models that seek to
improve retail decisions through analysis of customer data
data mining correct answers an information processing method that relies on search techniques to
discover new insights into the buying patterns of customers, using large databases
market basket analysis correct answers Specific type of data analysis that focuses on the
composition of the basket (or bundle) of products purchased by a household during a single
shopping occasion.
- computer program counts the number of times two products get purchased at the same time
2 objectives of building CRM through frequent shopper programs correct answers 1. build a data
warehouse that links customers data to their transactions
2. encourage repeat purchase behavior and loyalty
80/20 rule correct answers 80 percent of the sales or profits come from 20 percent of the
customers
customer pyramid correct answers platinum, gold, iron, lead
Platinum Segment—Customer Pyramid correct answers top 25%, most profitable and loyal
customers who are typically not overly concerned about price
gold segment - customer pyramid correct answers buy a significant amount of merchandise from
the retailer, they are not as loyal as platinum customers and patronize some of the retailers
competitors, profitability less than platinum
iron segment - customer pyramid correct answers purchase modest amount of merchandise, but
spending levels, loyalty and profitability are not substantial enough for special treatments
