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MCQs - Customer Relationship Management

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

CRM primarily focuses on:

a)

Employee retention

b)

Customer acquisition and retention

c)

Supply chain management

d)

Financial reporting

2.

Which of the following is NOT a component of CRM?

a)

People

b)

Process

c)

Technology

d)

Warehousing

3.

The ultimate goal of CRM is to:

a)

Reduce advertising costs

b)

Improve operational efficiency

c)

Build long-term profitable customer relationships

d)

Increase number of touch points

4.

Which of the following can be considered as a customer touch point?

a)

Salesperson interaction

b)

Customer care call center

c)

Company website or mobile app

d)

All of the above

5.

CRM is best described as:

a)

A sales technique

b)

A philosophy and business strategy supported by technology

c)

A financial planning tool

d)

A product promotion tool

6.

The first phase of the CRM cycle is:

a)

Executive Phase

b)

Planning Phase

c)

Assessment Phase

d)

Implementation Phase

7.

The 4C's of CRM process are:

a)

Customer, Cost, Convenience, Communication

b)

Customer, Channel, Competitor, Cost

c)

Customer, Collaboration, Commitment, Communication

d)

Company, Customer, Competition, Culture

8.

In the Planning phase of CRM cycle, the organization focuses on:

a)

Understanding customer requirements

b)

Implementing CRM modules

c)

Evaluating CRM performance

d)

Training employees in CRM software

9.

e-CRM (Electronic CRM) primarily uses:

a)

Direct mail

b)

Telemarketing

c)

Internet and digital platforms

d)

Face-to-face meetings

10.

Which CRM module is mainly concerned with handling customer queries and complaints?

a)

Marketing automation module

b)

Sales automation module

c)

Service automation module

d)

Data warehousing module

11.

CRM affiliation in the retailing sector helps mainly in:

a)

Enhancing supplier partnerships

b)

Tracking customer buying behavior and loyalty

c)

Reducing production costs

d)

Improving warehousing functions

12.

The executive phase of CRM cycle is mainly about:

a)

Planning future goals

b)

Implementing strategies and CRM modules

c)

Conducting customer surveys

d)

Analyzing competitors

13.

Which of the following best describes Operational CRM?

a)

Focuses on analyzing customer data

b)

Deals with direct customer interactions through sales, service, and marketing

c)

Provides strategic insights into market trends

d)

Concentrates on data warehousing

14.

The concept of CRM mainly evolved from:

a)

Mass marketing approach

b)

One-to-one marketing and relationship marketing

c)

Product-oriented marketing

d)

Price-driven competition

15.

Which of the following is NOT a goal of CRM?

a)

Customer loyalty

b)

Improved profitability

c)

Better product design only

d)

Higher customer satisfaction

16.

Which type of CRM focuses on sharing information across departments to improve customer experience?

a)

Analytical CRM

b)

Collaborative CRM

c)

Operational CRM

d)

Strategic CRM

17.

The term Customer Lifetime Value (CLV) refers to:

a)

Cost incurred on each customer

b)

Total revenue expected from a customer over time

c)

Number of years a customer remains loyal

d)

Average transaction size per customer

18.

Which of the following is an example of a customer touch point in digital CRM?

a)

Social media interactions

b)

Mobile app notifications

c)

Online chatbots

d)

All of the above

19.

In CRM, the people component mainly refers to:

a)

Managers only

b)

Employees interacting with customers

c)

Customers themselves

d)

Vendors and suppliers

20.

Which of the following is NOT a key benefit of CRM?

a)

Improved customer loyalty

b)

Streamlined communication

c)

Guaranteed sales growth

d)

Enhanced customer satisfaction

21.

The term customer-centric organization means:

a)

Organization focuses on competitor's strategy

b)

All decisions are made keeping the customer in mind

c)

Profit maximization without considering customers

d)

Focus only on sales and promotions

22.

Which of the following represents the strategic goal of CRM?

a)

Short-term profit

b)

Long-term relationship and customer equity

c)

Quick sales closure

d)

Reduction in employees

23.

The Assessment phase in CRM cycle involves:

a)

Implementing CRM software

b)

Identifying customer needs and evaluating current practices

c)

Training employees in CRM tools

d)

Measuring customer loyalty

24.

Which is the correct sequence of the CRM cycle?

a)

Planning → Execution → Assessment

b)

Assessment → Planning → Executive

c)

Executive → Assessment → Planning

d)

Planning → Assessment → Executive

25.

CRM in retail sector is MOST helpful in:

a)

Reducing supplier cost

b)

Personalizing offers and loyalty programs

c)

Increasing warehouse storage

d)

Designing production process

26.

Which module in CRM helps to track leads, opportunities, and pipelines?

a)

Sales automation

b)

Marketing automation

c)

Service automation

d)

Analytical module

27.

The 4C's model of CRM emphasizes shifting focus from product to:

a)

Cost, Company, Competitor, Channel

b)

Customer, Cost, Convenience, Communication

c)

Customer, Culture, Cost, Coordination

d)

Channel, Collaboration, Customer, Cost

28.

Which of the following is a benefit of e-CRM?

a)

Limited interaction with customers

b)

Faster and personalized communication

c)

Higher physical infrastructure cost

d)

Manual tracking of customer data

29.

Which CRM module is MOST important for handling after-sales service?

a)

Sales module

b)

Service module

c)

Marketing module

d)

Planning module

30.

The executive phase of CRM cycle focuses on:

a)

Planning budget

b)

Implementing CRM tools and strategies

c)

Identifying customer segments

d)

Training workforce

31.

In CRM, data mining techniques are mostly used in:

a)

Analytical CRM

b)

Collaborative CRM

c)

Operational CRM

d)

Retail CRM

32.

The main objective of CRM process is to:

a)

Maximize company's short-term profits

b)

Build and manage strong customer relationships

c)

Improve only marketing campaigns

d)

Reduce competition

33.

In retail, CRM helps companies to:

a)

Understand buying patterns

b)

Introduce loyalty programs

c)

Increase repeat purchases

d)

All of the above

34.

Which of the following is a key challenge in implementing CRM?

a)

High customer satisfaction

b)

Employee resistance to change

c)

Easy integration with existing systems

d)

Low training requirements

35.

A successful CRM process should primarily be:

a)

Technology-driven only

b)

Customer-focused and strategy-driven

c)

Product-focused and sales-driven

d)

Competitor-focused only