BUSN258
Customer Relations
Comprehensive Finals Review (Qns & Ans)
2025
1. Which of the following metrics is primarily used to measure
customer satisfaction?
a) Net Promoter Score (NPS)
b) Customer Lifetime Value (CLV)
c) Churn Rate
d) Market Share
ANS: a) Net Promoter Score (NPS)
©2024/2025
, Rationale: NPS is specifically designed to gauge customer
satisfaction and loyalty by asking how likely customers are to
recommend the company or product to others.
2. What is a key benefit of implementing a Customer Relationship
Management (CRM) system?
a) Decreased employee turnover
b) Reduced advertising costs
c) Enhanced customer data management
d) Improved production efficiency
ANS: c) Enhanced customer data management
Rationale: CRM systems are designed to gather, store, and
analyze customer data effectively, which leads to improved
customer interactions and relationships.
3. Which strategy focuses on aligning a company’s products or
services with customer needs to improve relationship quality?
a) Financial forecasting
b) Customer-centric marketing
c) Vertical integration
d) Product diversification
ANS: b) Customer-centric marketing
©2024/2025
, Rationale: Customer-centric marketing emphasizes
understanding and meeting customer needs, improving
relationship quality and driving loyalty.
4. What is the primary goal of customer relationship
management?
a) Maximizing shareholder profits
b) Enhancing customer loyalty and retention
c) Reducing production costs
d) Expanding market share
ANS: b) Enhancing customer loyalty and retention
Rationale: CRM aims to build and maintain long-term
customer relationships, focusing on loyalty and retention to
sustain business growth.
5. Which of the following tools can be employed to predict future
customer behavior?
a) Regression analysis
b) Qualitative interviews
c) SWOT analysis
d) Environmental scanning
ANS: a) Regression analysis
©2024/2025
, Rationale: Regression analysis uses statistical methods to
forecast future behaviors based on historical data, applicable for
predicting customer behavior.
Fill-in-the-Blank Questions
6. The process of evaluating a customer's potential financial worth
throughout their relationship with a company is known as
_________.
ANS: Customer Lifetime Value (CLV)
Rationale: CLV measures total revenue expected from a
customer, thus helping businesses in planning long-term
strategies.
7. _________ is the practice of tailoring customer interactions and
offers to individual preferences to enhance their experience.
ANS: Personalization
Rationale: Personalization involves customizing offers and
communications to meet individual customer preferences,
enhancing engagement and satisfaction.
8. The _________ Rate measures the percentage of customers
who discontinue their relationship with a company over a
specified period.
©2024/2025
Customer Relations
Comprehensive Finals Review (Qns & Ans)
2025
1. Which of the following metrics is primarily used to measure
customer satisfaction?
a) Net Promoter Score (NPS)
b) Customer Lifetime Value (CLV)
c) Churn Rate
d) Market Share
ANS: a) Net Promoter Score (NPS)
©2024/2025
, Rationale: NPS is specifically designed to gauge customer
satisfaction and loyalty by asking how likely customers are to
recommend the company or product to others.
2. What is a key benefit of implementing a Customer Relationship
Management (CRM) system?
a) Decreased employee turnover
b) Reduced advertising costs
c) Enhanced customer data management
d) Improved production efficiency
ANS: c) Enhanced customer data management
Rationale: CRM systems are designed to gather, store, and
analyze customer data effectively, which leads to improved
customer interactions and relationships.
3. Which strategy focuses on aligning a company’s products or
services with customer needs to improve relationship quality?
a) Financial forecasting
b) Customer-centric marketing
c) Vertical integration
d) Product diversification
ANS: b) Customer-centric marketing
©2024/2025
, Rationale: Customer-centric marketing emphasizes
understanding and meeting customer needs, improving
relationship quality and driving loyalty.
4. What is the primary goal of customer relationship
management?
a) Maximizing shareholder profits
b) Enhancing customer loyalty and retention
c) Reducing production costs
d) Expanding market share
ANS: b) Enhancing customer loyalty and retention
Rationale: CRM aims to build and maintain long-term
customer relationships, focusing on loyalty and retention to
sustain business growth.
5. Which of the following tools can be employed to predict future
customer behavior?
a) Regression analysis
b) Qualitative interviews
c) SWOT analysis
d) Environmental scanning
ANS: a) Regression analysis
©2024/2025
, Rationale: Regression analysis uses statistical methods to
forecast future behaviors based on historical data, applicable for
predicting customer behavior.
Fill-in-the-Blank Questions
6. The process of evaluating a customer's potential financial worth
throughout their relationship with a company is known as
_________.
ANS: Customer Lifetime Value (CLV)
Rationale: CLV measures total revenue expected from a
customer, thus helping businesses in planning long-term
strategies.
7. _________ is the practice of tailoring customer interactions and
offers to individual preferences to enhance their experience.
ANS: Personalization
Rationale: Personalization involves customizing offers and
communications to meet individual customer preferences,
enhancing engagement and satisfaction.
8. The _________ Rate measures the percentage of customers
who discontinue their relationship with a company over a
specified period.
©2024/2025
