The top 80 percent of customers generate 20 percent of the company's profits
The bottom 80 percent of customers generate 80 percent of the company's profits while the bottom 20 percent of customers generate 20 percent of the profits
The top 20 percent of customers generate 80 percent of the company's profits
The bottom 20 percent of customers generate 80 percent of the company's profits
Correct answer: (C) The top 20 percent of customers generate 80 percent of the company's profits
192. One problem that can deter a firm from effectively using CRM is __________________
Having the resources to manage and train employees effectively
Not all customers want a relationship with the company
The expense of building and maintaining a customer database
All of the above
Correct answer: (D) All of the above
193. Which of the following is true about ISO 14000 certification?
It is a prerequisite for ISO 9000 certification
It indicates a higher level of adherence to standards than ISO 9000
It is only sought by companies exporting their goods
It deals with environmental management
Correct answer: (D) It deals with environmental management
194. __________________ is when a company works continuously with its large customers to help improve their'performance.
Basic marketing
Reactive marketing
Proactive marketing
Partnership marketing
Correct answer: (D) Partnership marketing
195. __________________ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.
Customer cost
Value delivery system
Value proposition
Customer perceived value
Correct answer: (D) Customer perceived value
196. Total Quality Management emphasizes
The responsibility of the Quality Control staff to identify and solve all quality-related problems
A commitment to quality that goes beyond internal company issues to suppliers and customers
A system where strong managers are the only decision makers
A process where mostly statisticians get involved
Correct answer: (B) A commitment to quality that goes beyond internal company issues to suppliers and customers
197. Frequency programs (FP's) are designed to provide rewards to __________________
Customers who need to be encouraged to buy more frequently
Customers who buy frequently and in substantial amounts
Customers who buy frequently but in small amounts
Customers who buy infrequently in large amounts
Correct answer: (B) Customers who buy frequently and in substantial amounts
198. All of the following costs are likely to decrease as a result of better quality except
Customer dissatisfaction costs
Inspection costs
Warranty and service costs
Maintenance costs
Correct answer: (D) Maintenance costs
199. __________________ is a company's ability to perform in one or more ways that competitors cannot or will not match.
Customer advantage
Customer relationship advantage
Customer lifetime value
Competitive advantage
Correct answer: (D) Competitive advantage
200. "Quality is defined by the customer" is
An unrealistic definition of quality
A user-based definition of quality
A manufacturing-based definition of quality
A product-based definition of quality
The definition proposed by the American Society for Quality Control
Correct answer: (B) A user-based definition of quality