Customer Relationship Management MCQ with Answers

Customer Relationship Management MCQ: CRM Multiple Choice Question with Answers for Preparation of Academic and Competitive Exams

Customer Relationship

What is Customer Relationship management?

Customer relationship management (CRM) is a powerful tool that businesses use to manage their interactions with customers and prospects.

CRM is designed to help organizations build strong relationships with their customers by analyzing customer data, identifying buying patterns, and providing personalized experiences. In essence, it helps companies understand the needs of their customers and respond to them in a personalized way.

At its core, CRM is all about using technology to manage customer interactions effectively. This can be done through software that tracks customer interactions across various channels, such as email, social media platforms, phone calls, and even in-person meetings.

By gathering all this information in one place, businesses can get a complete view of each customer’s journey with them, from the first interaction to the most recent one.

In addition to helping companies improve their relationship with existing customers, CRM also helps identify potential new customers.

Customer Relationship Management MCQs

1. CRM is a business philosophy that aims at maximizing ___ in the long run.
Answer: Customer value

2. Contacts with a customer can be managed by phone, fax, or e-mail. (True/False)
Answer: True

3. According to ___, CRM is an iterative process that turns customer information into positive customer relations.
a) Ronald S. Swift
b) Stanley A. Brown
c) Chris Todman
d) Gartner Group
Answer: (A)

4. In the 1980s, the emergence of ___ marketing took place.
Answer: Database

5. CRM helped in increasing customer satisfaction from order to end product. (True/False)
Answer: True

6. Although ___ was developed as a Linux program, it is compatible with Windows.
a) Telemation
b) SAP
c) Oracle
d) PeopleSoft
Answer: (A)

7. A CRM system stores comprehensive information about a customer in a centralized way that is accessible anytime. (True/False)
Answer: True

8. A successful CRM increases production and profit throughout the ___.
Answer: Customer lifecycle

9. CRM understands the ___ and has the capability to create an action plan for the staff working in the various segments.
Answer: Segmental relationship

10. Companies that are using ___ are raising the level of personalization.
Answer: Proactive CRM

11. Operational CRM has developed into two variants namely eCRM and mCRM. (True/False)
Answer: True

12. The main goal of ___ is to enable two-way continuous interactivity between the customer and the company.
Answer: mCRM

13. The objective of data mining is to detect ‘known’ relationships among data. (True/False)
Answer: False: The objective of data mining is to detect ‘hidden’ relationships among data.

14. Which of the following options includes relationship management with external stakeholders in the value chain?
a) Analytical CRM
b) eCRM
c) Collaborative CRM
d) EAI
Answer: (C)

15. The tools of technology are Information Technology and Knowledge Management. (True/False)
Answer: True

16. ___ are important to develop and evaluate the results of marketing interactions. (Pick the right option)
a) Campaign management tools
b) Interfaces
c) Analytical tools
d) Data warehouses
Answer: (A)

17. The result of the comparison between customer’s expectation and customer’s perception is ___.
Answer: customer satisfaction

18. Measuring customer satisfaction requires a set of activities such as preparing questionnaires, conducting surveys, and analyzing the results. (True/False)
Answer: True

19. ___ means customer’s belief related to products or services received or experienced.
Answer: Perception

20. CRM system generates ___ throughout interactions on different channels.
Answer: 360-degree customer view

21. There are three phases of customer interaction. (True/False)
Answer: False: There are four phases involved in customer interaction.

22. ___ is the translation of customers’ strategies into rules.
Answer: Context

23. Integrated view of the customer provides a connection between customer interaction channels and customer strategy. (True/False)
Answer: True

24. In ___, active management and assessment of products and services take place. (Pick the right option)
a) Intelligence phase
b) Value creation phase
c) Integration phase
d) Initial phase
Answer: (C)

25. CRM ___ combines the information of the customer that flows through different departments and customer channels.
Answer: Architecture

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