MBCH772D ?

CUSTOMER RELATIONSHIP MANAGEMENT

Total Marks: 100 Duration: 180 Minutes
Instructions:
Question Paper Related Instructions
1. Total Duration of Exam is 3 hrs
2. Do not navigate away from Test Window during Exam
3. Section A Contains 25 MCQ of 2 Marks Each
4. Section B Contains Short Descriptive Question. Answer the Question as per
Instructions. This
Section is of 20 Marks.
5. Section C Contains Situation Based Questions. Answer the Question as per
Instructions. This
Section is of 30 Marks.
6. Upload All the Answers of Section B Together
7. Upload All the Answers of Section C Together
Instructions for Descriptive Questions
1. Make Sure to Upload all Scans immediately after you answer every questions. Do
not wait
till the end to avoid any last-minute panic
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Section A: MCQ�fs [25X2] Difficulty Level: Low

Attempt all 25 Questions

1. Customer Relationship Management is about______________

a. Acquiring the right customer
b. Instituting the best processes
c. Motivating employees
d. All of the above
2. Knowing more about their customers would help marketers serve the
customers______ a. Much better
b. Satisfy them
c. keep them loyal
d. All of the above
3. Number of customers or potential customers who will help in
company's growth is classified as____________

a. customer base
b. retailer base
c. distributor base
d. marketers base
4. __________ is the processing of data about customers and their relationship
with the enterprise in order to improve the enterprise�fs future sales and service
and lower cost.
a. database marketing
b. customer relationship management
c. CRM analytics
d. B2C
5. CRM technology can help in_________
a. Designing direct marketing efforts
b. Developing new pricing models
c. Processing transactions faster
d. All of the above
6. _________ is the study of how individuals, groups and organizations select,
buy, use and dispose of goods, services, ideas or experiences to satisfy their
needs and wants.
a. Consumer behaviour
b. Product cycle
c. Purchase behaviour
d. None of the above
7. The decision-making process of effective CRM involves _________________
a. Clearly define the management objective and strategy
b. Choose the right process of implementation
c. Identify the best software solution
d. All of the above
8. ____________is responsible for automating various marketing processes
a. EMA
b. SFA
c. CRM
d. CSS
9. A _______________is said to have customers, a physical or virtual facility to
house the required hardware and/or infrastructure, and service providers.
a. Service System
b. CRM System
c. Service Development System
d. All of them
10. While analysing an end service provider, it is clearly
observable that all the _______________ can be given a specific
role and placement in its service system hierarchy.
a. Service System
b. Sub System
c. CRM System
d. Eco System
11. The main objectives of Customer Relationship Measurement systems are___________

a. To influence or validate decision making

b. To guide ongoing activities or tactics
c. To predict future states

d. All of the above

12. In Hard Approach companies develop a ____________ model which helps to deliver
actual
cash benefits to the company.
a. Profit maximisation
b. Return on investment
c. Customer Satisfaction
d. All the above
13. A measurement approach deployed for single customer segment per one
product/service. a. Product Deployment
b. Segment Deployment
c. Narrow Deployment
d. All of the above
14. A measurement approach deployed for single segment
a. Single Deployment
b. Narrow Deployment
c. Segment Deployment
d. None of the above
15. Customer Complaint Management Initiatives provides _________ in
expensive and acrimonious legal disputes
a. Decrease
b. Increase
c. No Change
d. None of them
16. Upset customers may complain to the company, but the company may use
an independent shipper, complicating complaint resolution is a type of
__________ complaint.
a. Product Specific complaint
b. Delivery error
c. Personnel complaint
d. None of the them
17. The _________ who will become a partner will become a profitable patron
a. Manager
b. Organization
c. Customer
d. Employee
18. With a ________ database, the organisation might increase its possibilities to
accumulate a more range of clients.
a. Larger
b. Smaller
c. Stable
d. Unstable
19. Customer Loyalty leads to__________
a. Retention of customer
b. Repeated purchase by the customer
c. getting feedbacks from the customers
d. All of the above
20. A positive corporate image has ________ impact on customer loyalty
a. Little

b. Unfavourable
c. Favourable
d. None of them
21. In Cross selling the new product is usually recommended to the purchaser based
totally on their _________ purchases.
a. Past
b. Present
c. Future
d. None of them
22. Customer care that exceeds client expectation will cause _______ of retention
a. Lower rate
b. Moderate rate
c. Higher Rate
d. All of Them
23. Analytical CRM is defined as___________
a. Support system
b. To understand and capitalize customer needs and wants
c. To help senior executives, marketing, sales
d. All of Them
24. The Key feature of analytical CRM is________
a. It combines and interacts value of customer
b. Customer Acquisition
c. Time until Acquisition
d. None of Them
25. In order to further increase the dedication in their clients, diverse companies
additionally implement _________ applications
a. Saving
b. Club
c. Relationship
d. Loyalty

Section B: Short Descriptive Answers [Scan & Upload] Difficulty Level: Medium
Attempt any 2 Question [2Qx10]
Write Answer in not less than 200 Words

Q1. Explain the importance of a CRM system in an organization & Throw light on
the approaches of CRM?
Q2. Discuss the five phases discovered by Dwyer that may give rise to
customer- supplier relationships. Explain why customers do not want
relationships with suppliers?
Relationships change over time. Parties become closer or more distant; interactions
become more or less frequent. Because they evolve, they can vary considerably, both
in the number and variety of episodes, and the interactions that take place within
those episodes.
Dwyer has identified five phases through which customer-supplier relationships can
evolve.
Awareness.
Exploration.
Expansion.
Commitment.
Dissolution.
Awareness
Awareness is when each party comes to the attention of the other as a possible
exchange partner.
Exploration
Exploration is the period of investigation and testing during which the parties
explore each other�fs capabilities and performance. Some trial purchasing takes
place. If the trial is unsuccessful the relationship can be terminated with few
costs.
This exploration phase is thought to comprise five sub-processes: attraction;
communication and bargaining; development and exercise of power; development of
norms; and the development of expectations.
Expansion
Expansion is the phase in which there is increasing interdependence. More
transactions take place and trust begins to develop.
Commitment
The commitment phase is characterized by increased adaptation on both sides and
mutually understood roles and goals. Automated purchasing processes are a sure sign
of commitment.
Dissolution
Not all relationships will reach the commitment phase. Many are terminated before
that stage. There may be a breach of trust that forces a partner to reconsider the
relationship.
When might customers NOT want relationships with suppliers?
Whilst companies generally want long-term relationships with customers for the
economic reasons already described, it is far less clear that customers universally
want relationships with their suppliers. B2B customers cite a number of concerns.
1. ? ??Fear of dependency
This is driven by a number of worries. Customers are concerned that the supplier
might act opportunistically, once they are in a preferred position, perhaps
introducing price rises.
They also fear the reduction in their flexibility to choose alternative suppliers.
There may be concerns over a loss of personal authority and control.
2. ? ??Lack of perceived value in the relationship
Customers may not believe that they will enjoy substantial savings in transaction
costs, or that the relationship will help them create a superior competitive
position, generate additional revenue or that there will be any social benefits. In
other words, there is no perceived value above and beyond that obtained from the
product or service.
3. ? ??Lack of confidence in the supplier
Customers may choose not to enter a relationship because they feel the potential
partner is unreliable, too small, has a poor reputation or is insufficiently
innovative.
4. ? ??Customer lacks relational orientation
Not all?company culturesOpens in new window?are equally inclined towards
relationship-building. Some are much more transactional.
For example, some retailers make it a policy to buy a high proportion of their
merchandise on special occasion. This preference for transactional rather than
relational business operations will be reflected in the company�fs buying
processes, and employee reward systems.
5. ?Rapid technological changes
In an industry with rapidly changing technology, commitment to one supplier might
mean that the customer misses out on new developments available through other
suppliers.
In the B2C context, consumers buy hundreds of different convenience, shopping and
specialty products and services.
Whereas consumers might want a relationship with their financial service adviser or
their physician, they can often find no good reason for developing closer
relationships with the manufacturer of their household detergent, snack foods or
toothpaste. However, for consumer products and services that are personally
important, customers can become more involved and become more emotionally engaged.
Why Customers Want Relationships with Suppliers
We now?reverse the questionOpens in new window?and examine why customers may want
to build relationships with suppliers. First, we look at the business-to-business
context. A relationship with a supplier can reduce the customer�fs sense of?
perceived risk.
Perceived risk?takes many forms ? performance, physical, financial, social and
psychological risk.
High levels of perceived risk are uncomfortable for many customers. A relationship
can reduce or eliminate perceived risk. Here are a number of circumstances when
perceived risk may be high and a relationship desirable:
1. ? ??Product complexitiy
If the product or its applications are particularly complex, for example networking
infrastructure, a relationship can reduce performance risk ? the risk that the
technology will not work as desired or expected.
2. ? ??Product strategic significance
If the product is strategically important or mission-critical, for example supply
of essential raw materials for a continuous process manufacturer, performance risk
may be high.
3. ? ?Service requirement
If there are downstream service requirements, for example for machine tools, a
relationship can ensure that the tools will remain serviced and functional.
4. ? ??Purchase cost
If a purchase is particularly costly, for example purchases of large pieces of
capital equipment such as earth-moving equipment, financial risk is high.
5. ? ?Reciprocity
A financial audit practice may want a close relationship with a management
consultancy, so that each party benefits from referrals by the other.

Q3. How CRM is a business strategy? Explain the nature of CRM strategy
and discuss the four-step approach to create a CRM strategy.
Customer Relationship Management (CRM) is a strategy that companies use to manage
interactions with customers and potential customers. CRM?helps organisations
streamline processes, build customer relationships, increase sales, improve
customer service, and increase profitability.
The relationship with your customers doesn�ft end after a purchase is made. In
order to encourage upsells, cross-sells, repeat business and social proof, your
business should be actively nurturing customer relationships through a tailored CRM
strategy.
The good news is there are many proven strategies to choose from and try out.
We�fll go over some of the best examples of CRM strategies as well as what you need
to do to hit the ground running.
Why You Need a CRM Strategy
The biggest benefits of having a CRM strategy for your business include:
* Making your organization more collaborative as a whole
* Keeping better track of your sales leads
* Creating more targeted and personalized marketing campaigns
* Being able to easily identify promising opportunities for your business to grow
or bring in more revenue
* Providing better service to both prospective and current customers
* Drawing insights and data to make more accurate forecasts on future performance

Section C: Critical Thinking / Situational [Scan & Upload] Difficulty Level: High

Attempt All Question [2Qx15]

Write Answer in not less than 500 Words

Q1. If you've had to say no to a customer request in the past, how did you do so
and preserve the relationship?
Q2. You learn that a new member of the sales team over-promised on what the company
can deliver to a new customer. How do you handle the situation?