#CRM #MCQPractice #CustomerRelationshipsMCQ #ExamPrep Enhance your grasp of Customer Relationship Management (CRM) SEt 1 through a curated set of MCQ practice questions. Sharpen your understanding of CRM strategies, tools, and customer-centric approaches to excel in your assessments. Access this comprehensive practice resource to elevate your knowledge and test readiness.
QN1: One of the following is not the goal of customer service process flow:
a) Dependability
b) Responsiveness
c) Authority
d) Perish ability
Answer
Answer: a) Dependability
QN2: Developing an effective ___ for the whole organization also helps the retail firm to operate a lot more efficiently.
a) Customer lobby and customer interaction
b) Competitors employee network
c) Training and development plan
d) Customer screening
Answer
Answer: c) Training and development plan
QN3: When customer service is less than the expectations, the service rendered by the retail firm is___.
a) Poor
b) Good
c) Fair
d) Neither good nor poor
Answer
Answer: c) Fair
QN4: Customer service in retailing focuses on ___.
a) Customer paying capacity
b) Customer expectations
c) Customer profile
d) Customer desire
Answer
Answer: b) Customer expectations
QN5: This is not the set of service standards used by the retailer for his customer.
a) Right strategy
b) Right systems and people
c) Right processes and people to deliver them
d) Service rendered as per the disposable income of the customer
Answer
Answer: d) Service rendered as per the disposable income of the customer
QN6: Good services mean offering customers___.
a) Offering service to customers as per their profile
b) Offering service equal to the price of goods/service
c) Offering service more than what is expected
d) Offering the product with best features and forget after that
Answer
Answer: b) Offering service equal to the price of goods/service
QN7: This is not one of the classification of customer expectations:
a) Basic and expected
b) Customer profile
c) Desired
d) Unanticipated
Answer
Answer: d) Unanticipated
QN8: ___ is absolutely essential attributes of the experience.
a) Basic customer expectations
b) Expected customer expectations
c) Desired customer expectations
d) Unanticipated customer expectations
Answer
Answer: a) Basic customer expectations
QN9: ___ are the attributes the customer doesn’t expect, but knows about them and appreciates it if the experience includes them.
a) Basic customer expectations
b) Expected customer expectations
c) Desired customer expectations
d) Unanticipated customer expectations
Answer
Answer: b) Expected customer expectations
QN10: ___ is the ‘surprise’ attributes that add value for the customer beyond his or her desires or expectations.
a) Basic customer expectations
b) Expected customer expectations
c) Desired customer expectations
d) Unanticipated customer expectations
Answer
Answer: d) Unanticipated customer expectations
QN11: Communicating the organization’s ___ to the employees work wonders.
a) Vision, values, plans and strategies
b) Financial condition and product portfolio
c) Internal secrets and competitors profile
d) Resource constraints and competitors profile
Answer
Answer: a) Vision, values, plans and strategies
QN12: Some retailers use ___ to evaluate the service quality performance
a) Sales persons
b) Mystery shoppers
c) Financial institutions
d) Govt. support
Answer
Answer: b) Mystery shoppers
QN13: This is not one of the parameters the retailers do for analyzing its organizational assessment of the service and culture:
a) Value delivered to the customer
b) The internal effectiveness of the organisation
c) Quality of work life of employees
d) Financial status of the firm
Answer
Answer: a) Value delivered to the customer
QN14: The retailer needs to monitor and measure service quality of:
a) Only the frontline sales person within the store`
b) All departments/ functions, both at the front and back ends
c) The HR and sales deptt.
d) The sales deptt. only
Answer
Answer: b) All departments/ functions, both at the front and back ends
QN15: Customer expectations keep ___.It’s the retail organisation’s responsibility to achieve higher levels of customer satisfaction.
a) Lowering
b) Rising
c) Balancing
d) None of these
Answer
Answer: b) Rising
QN16: Customer service has the dimensions:
a) The services (facilities, concessions or infrastructure offerings)
b) Service offered by the store
c) Both (a) and (b)
d) Finance available with target customers
Answer
Answer: a) The services (facilities, concessions or infrastructure offerings)
QN17: ___ are the associated attributes of the experience that the customer takes for granted.
a) Basic customer expectations
b) Expected customer expectations
c) Desired customer expectations
d) Unanticipated customer expectations
Answer
Answer: d) Unanticipated customer expectations
QN18: From the customer’s perspective ___ is the perception of the shopper to draw benefits from a purchase (formed by the total retail experience).
a) Value
b) CRM
c) Brand loyalty
d) Delight stage
Answer
Answer: a) Value
QN19: This is not one of the four factors to be kept in mind in relationship retailing
a) Customer base
b) Customer service
c) Customer satisfaction and loyalty programs
d) Employee empowerment
Answer
Answer: d) Employee empowerment
QN20: It is more worth nurturing relationships with some shoppers than with others; they are termed as___ and they should be singled out.
a) Consumer cooperatives
b) Consumerism
c) Core customers
d) Buyer
Answer
Answer: d) Buyer
QN21: Courtesy (referring to the customer by name and saying thank you) and suggestion selling is termed as ___ in the classification of customer services. They are the low cost services and value high for the shopper.
a) Patronage builders
b) Patronage solidifiers
c) Disappointers
d) Basics
Answer
Answer: b) Patronage solidifiers
QN22: High cost of offering the customer service and high value of the customer service to the shopper, for e.g.: transaction speed, credit, gift registry etc. is being termed as ___.
a) Patronage builders
b) Patronage solidifiers
c) Disappointers
d) Basics
Answer
Answer: a) Patronage builders
QN23: An upscale retailer would offer ___ customer services than a discount store
a) Less
b) More
c) Average
d) Equal
Answer
Answer: b) More
QN24: Researches have proven this fact that it costs 3 to 6 times more to sell product and services to___ than to ___.
a) new customers , existing customers
b) existing customers , new customers
c) loyal customers , new customers
d) new customers , loyal customers
Answer
Answer: a) new customers , existing customers
QN25: CRM is an iterative process that turns ___ into ___.
a) customer loyalty, customer data
b) customer data , customer loyalty
c) customer emotions , customer data
d) customer liability, customer data
Answer
Answer: b) customer data , customer loyalty
QN26: This is not one of the 4 activities of the CRM PROCESS CYCLE:
a) Analyzing customer data and identifying target customers
b) Developing CRM programs
c) Collecting customer data
d) Arranging frequent customer get-togethers
Answer
Answer: d) Arranging frequent customer get-togethers
QN27: Ideally, the database should not contain the following information:
a) Transactions
b) Customer preferences
c) Responses to marketing activity
d) Privacy and secret details of the customer
Answer
Answer: d) Privacy and secret details of the customer
QN28: One of the following sentences on customer loyalty to a retailer is not true:
a) Customers are committed to purchase merchandise/ services
b) Resist the activities of competitors attempting to attract the customers
c) Customers have a bond with the retailer
d) Customer provide secret information of friends and relatives
Answer
Answer: d) Customer provide secret information of friends and relatives
QN29: Three approaches that store-based retailers generally use to overcome the problem of identifying most customers who are making in-store transactions. The following is not the right approach:
a) Controlling the privacy concerns of the customers
b) Connecting internet purchasing data with the stores
c) Offering frequent shopper cards
d) Asking customers for their identifying information
Answer
Answer: a) Controlling the privacy concerns of the customers
QN30: ___ is a specific type of data analysis that focuses on the composition of the bundle of products purchased by a household during a single shopping occasion.
a) RFM Analysis
b) LTV scores
c) Market basket analysis
d) customer pyramid
Answer
Answer: c) Market basket analysis
QN31: A commonly used segmentation scheme divides customers into four segments. The incorrect segmentation is:
a) Silver segment
b) Platinum segment
c) Iron segment
d) Gold segment
Answer
Answer: a) Silver segment
QN32: Customers in this third tier probably do not deserve much attention from the retailer due to their modest LTV.
a) Silver segment
b) Platinum segment
c) Iron segment
d) Gold segment
Answer
Answer: c) Iron segment
QN33: A commonly used measure to score each customer is ___.It is the expected contribution from the customer to the retailer’s profits over his or her entire relationship with the retailer.
a) RFM Analysis
b) Life time value
c) Market basket analysis
d) Customer pyramid
Answer
Answer: b) Life time value
QN34: Retailers know that a relatively small number of customers account for the majority of their profits. This realization is often called the ___.80% of the sales or profits come from 20 percent of the customers.
a) 20-80 rule
b) 80-20 rule
c) 40-60 rule
d) 60-40 rule
Answer
Answer: b) 80-20 rule
QN35: Customers in the lowest segment of customer pyramid can cost the company money. They often demand a lot of attention but do not buy much from the retailer.
a) Iron segment
b) Platinum segment
c) Lead segment
d) (a) and (c) both
Answer
Answer: c) Lead segment
QN36: This segment is composed of the retailer’s customers with the top 25 percent LTVs. These are the most loyal customers who are not overly concerned about merchandise price and place more value on customer service.
a) Silver segment
b) Platinum segment
c) Iron segment
d) Gold segment
Answer
Answer: b) Platinum segment
QN37: ___ is the least profitable customers in the customer pyramid.
a) Lead segment
b) Platinum segment
c) Iron segment
d) Gold segment
Answer
Answer: a) Lead segment
QN38: ___are the most profitable customers in the customer pyramid.
a) Lead segment
b) platinum segment
c) Iron segment
d) Gold segment
Answer
Answer: b) platinum segment
QN39: ___ often used by catalog retailers and direct marketers.
a) RFM Analysis
b) Life time value
c) Market basket analysis
d) Customer pyramid
Answer
Answer: a) RFM Analysis
QN40: RFM analysis stands for___,
a) recency, frequency, monetary
b) requirement, fulfillment, monetary
c) recency, freebees ,monitoring
d) repetition, frequency , momentary
Answer
Answer: a) recency, frequency, monetary
