BM 3.01 - 3.03

In the modern business world, a growing number of interactions between businesses and customers are taking place:

• in stores.

• on the phone.

• through the mail.

• over the Internet.

Which statement is true about customer relationship management (CRM)?

• A business has implemented a CRM program if it is providing good customer service.

• A primary goal of CRM is to maximize the long-term value of customer relationships.

• Price is the most important factor in building a long-term buyer-seller relationship.

• Organizational culture has little effect on a customer’s experiences with a business.

One action that an ethical business can take to help build the long-term trust and loyalty of its customers is to:

• send daily opt-in e-mail messages to customers.

• implement a comprehensive customer privacy policy.

• sell its customer list to third parties without permission.

• maintain detailed information about customers’ transactions.

Smith Corporation continually updates the firewalls on its website to protect its customers’ personal information from theft. Kemper’s actions help build trust with its customers in relation to:

• online security.

• physical safety.

• calculation errors.

• product tampering.

Which of the following is a key benefit of implementing a customer relationship management (CRM) system?

• Increased product variety.

• Enhanced customer insights.

• Lower production costs.

• Faster shipping times.

What is one way a business can ensure the security of its customers' online transactions?

• By using outdated encryption methods.

• By regularly updating its security protocols.

• By sharing customer data with partners.

• By ignoring cybersecurity threats.

How can a business effectively use customer feedback to improve its services?

• By disregarding negative comments.

• By analyzing feedback to identify trends.

• By only focusing on positive reviews.

• By limiting feedback collection to once a year.

What often appears at the bottom of a business letter if a sales brochure is attached?

• Enclosure notation
• Reference initials

Which is a benefit to businesses of orienting new employees?

• Reduces turnover
• Eliminates training

Most businesses provide employee orientation as soon as new employees report for work because:

• employees cannot work until they have been oriented.
• that is when employees are anxious to learn.