In today’s fast-paced business world, the importance of effective Customer Relationship Management MCQs (CRM) cannot be overstated. CRM plays a pivotal role in building strong customer relationships, driving sales, and enhancing overall business success.

For students and professionals aiming to master the concepts of CRM, having access to well-structured Customer Relationship Management MCQs and answers is essential. In this blog post, we’ve compiled a comprehensive set of CRM MCQs and provided answers, making it a valuable resource for anyone seeking to test and enhance their CRM knowledge.

Customer Relationship Management MCQ PDF

Below, we’ve provided a selection of CRM Customer Relationship Management MCQs and answers. You can download the complete set as a PDF for your convenience.

  • A person’s ______________ are all the groups that have a direct or indirect influence on
    their attitudes or behavior.
    1) reference groups
    2) dissociative groups
    3) inspirational groups
    4) None of the above
    Answer: reference groups
  • In buyer decision process, percentage of potential customers in a given target market
    is called____________
    1) company funnel
    2) customer funnel
    3) retailers funnel
    4) marketing funnel
    Answer: marketing funnel
  • Process of manage information about customers to maximize loyalty is said to
    be_______________
    1) retailers management
    2) company relationship management
    3) supplier management
    4) company relationship management
    Answer: customer relationship management
  • Record which is based on business customers past purchases, sales price and volumes
    is classified as_____________
    1) customer database
    2) business database
    3) company marketing
    4) databases marketing
    Answer: business database
  • Aggregate value of customer’s base is classified as__________
    1) marketers base value
    2) retention value
    3) shareholder value
    4) base value
    Answer: shareholder value
  • Customer Relationship Management is about______________
    1) acquiring the right customer
    2) motivating employees
    3) instituting the best processes
    4) all of the above
    Answer: All of the above
  • Whole cluster of benefits when company promises to deliver through its market
    offering is called_____________
    1) customer proposition
    2) value proposition
    3) product proposition
    4) brand proposition
    Answer: value proposition
  • Customized products and services for customers and interaction to individual
    customers are part of_____________
    1) company relationship management
    2) retailers management
    3) supplier management
    4) customer relationship management
    Answer: customer relationship management
  • Third step in customer’s value analysis______________
    1) monitoring competitors performance
    2) assessing attributes importance
    3) assessing company performance
    4) Both A & C
    Answer: Both A & C
  • Percentage or number of customers who move from one level to next level in buying
    decision process is called
    1) loyalty rates
    2) shopping rates
    3) conversion rates
    4) marketing rates
    Answer: conversion rates
  • Company’s ‘customer relationship capital’ is another name of_____________
    1) customer conversion
    2) customer retention
    3) dissatisfied customers
    4) satisfied customers
    Answer: satisfied customers
  • All costs customer expects to incur to buy any market offering is called________
    1) total functional cost
    2) total economic cost
    3) total functional cost
    4) total customer cost
    Answer: total customer cost
  • CRM technology can help in__________
    1) processing transactions faster
    2) developing new pricing models
    3) designing direct marketing efforts
    4) All of the above
    Answer: All of the above
  • Company’s monetary, time and energy cost, all are included in_________________
    1) psychological cost
    2) image benefits
    3) total customer cost
    4) personal benefits
    Answer: total customer cost
  • Programs designed for customers which is limited to any affinity group are classified
    as____________
    1) royalty programs
    2) group membership programs
    3) club membership programs
    4) loyalty programs
    Answer: club membership programs
  • Technique which tries to identify real cost of serving an individual customer is
    called______________
    1) turnover based accounting
    2) cost based accounting
    3) activity based accounting
    4) price based accounting
    Answer: activity based accounting
  • A person or company that yields a revenue more than incurred costs of selling and
    serving is called_____________
    1) profitable customers
    2) satisfied customers
    3) dissatisfaction
    4) superior value
    Answer: profitable customers
  • Customers lifetime purchases that generate net present value of future profit
    streams is called___________
    1) customer purchases value
    2) customer cost incurred
    3) customer lifetime value
    4) customer relationships
    Answer: customer lifetime value
  • For the rural areas, the socioeconomic system use __________ of the chief wage
    earner
    1) education and occupation
    2) education and type of home
    3) occupation and type of home
    4) None of above
    Answer: occupation and type of home
  • Social class is indicated by ________variables.
    1) several
    2) single
    3) All of above
    4) None of above
    Answer: several
  • ‘Total customer benefits’ includes___________
    1) image benefit
    2) services benefit
    3) product benefits
    4) All of above
    Answer: All of above
  • A ___________ is an organized collection of detailed information about individual
    customers or prospects that is accessible, actionable and current for marketing
    purposes such as lead generation and others.
    1) business database
    2) customer mailing list
    3) customer database
    4) none of the above
    Answer: customer database
  • Socioeconomic system classifies urban households into___________broad categories.
    1) 8
    2) 4
    3) 2
    4) 6
    Answer: 8
  • Any occasion on which brand or product is encountered by end customers is
    called_____________
    1) company touch point
    2) relationship touch point
    3) customer touch point
    4) retailers touch point
    Answer: customer touch point
  • Number of customers or potential customers who will help in company’s growth is
    classified as__________
    1) retailer base
    2) distributors base
    3) customer base
    4) marketers base
    Answer: customer base
  • First step in analysis of customer value is to____________
    1) assessing attributes importance
    2) identify customers value attributes
    3) assessing company\s performance
    4) assessing competitors performance
    Answer: identify customers value attributes
  • _______uses sophisticated mathematical and statistical techniques such as neutral
    networking and cluster analysis.
    1) data survey
    2) data mining
    3) crm
    4) All of above
    Answer: data mining
  • Process of building, organizing and using databases of customers to build customer
    relationship is classified as___________
    1) customer database
    2) database marketing
    3) company database
    4) detailed database
    Answer: database marketing
  • System includes all experiences while using market offering is classified as_________
    1) distinctive proposition
    2) value delivery system
    3) customer proposition
    4) product proposition
    Answer: value delivery system
  • Perceived monetary value of all benefits which customers expect from a given
    product because of brand image is called__________
    1) total customer benefit
    2) total functional cost
    3) total economic cost
    4) total customer cost
    Answer: total customer benefit
  • The main drawback of CRM is_______
    1) rolling out crm before changing the organization to match
    2) implementing crm before creating a customer strategy
    3) stalking, not wooing, customers
    4) All of the above
    Answer: All of the above
  • Difference between customers evaluation including all costs incurred and benefits is
    called___________
    1) company market value
    2) customer affordability
    3) customer reliability
    4) customer perceived value
    Answer: customer perceived value
  • Indian marketers use a term called socioeconomic classification, which is based on
    the _ of chief wage earner.
    1) occupation
    2) education
    3) All of above
    4) None of above
    Answer: All of above
  • The marketing messages committed to customers wishes is a part of_____________
    1) activity marketing
    2) supplier marketing
    3) permission marketing
    4) All of above
    Answer: permission marketing
  • _____________ is the study of how individuals, groups and organizations select, buy, use
    and dispose off goods, services, ideas or experiences to satisfy their needs and wants.
    1) purchase behavior
    2) consumer behavior
    3) product cycle
    4) All of above
    Answer: consumer behavior
  • _____________ is the fundamental determinant of a person’s wants and behavior.
    1) value
    2) culture
    3) attitude
    4) All of above
    Answer: culture
  • The method used to assess real cost of providing services to an individual customer
    is_____________
    1) turnover based accounting
    2) activity based accounting
    3) cost based accounting
    4) price based accounting
    Answer: activity based accounting
  • A consumer buying behavior is influenced by___________
    1) personal factors
    2) cultural and social factors
    3) All of above
    4) None of Above
    Answer: All of above
  • __ exerts the broadest and deepest influence on buying behavior.
    1) cultural factors
    2) personal factors
    3) international factors
    4) social factors
    Answer: cultural factors
  • ____________is any occasion on which the brand or product is used by end customers.
    1) company touch point
    2) customer touch point
    3) retailers touch point
    4) None of the above
    Answer: customer touch point
  • ____________ is the overall efficiency with which a bank handles its customer accounts in terms of prompt statements, rates of interest offered, etc.
    1) Functional quality
    2) Technical quality
    3) Production quality
    4) None of the above
    Answer: Technical Quality
  • ____________is the way the service is actually delivered and includes personal courtesy, the service environment in terms of comfort and decor, and the customers own role.
    1) Functional quality
    2) Technical quality
    3) Production quality
    4) None of the above
    Answer: Functional quality
  • ____________are the efforts in which the firm is engaged, to set up its customer’s expectations and make promises to customers regarding what is to be delivered.
    1) Internal marketing
    2) External marketing
    3) Both A & B
    4) None of the above.
    Answer: External marketing

Customer Relationship Management MCQs with Answers

Following are the few one liner questions along with True and False sentences which will be helpful to you in the Customer Relationship Management Multiple Choice Questions.

  1. The ____________ is the most commonly used enabling technology in tackling integration issues.
    Answer: Session Initiation Protocol (SIP)
  2. Integrated open standards-based architecture facilitates CICs to deliver immediate feedback across mediums that provide outstanding customer service. (True/ False)
    Answer: True
  3. The main objective of customer service is to have an integrated multichannel and multi-device communication. (True/False)
    Answer: True
  4. What provide insight and intelligence necessary to customize messages, product offers, and service according to individual customer needs?
    Answer: Customer Analytics
  5. ____________ involves the process of generating awareness in a prospective customer and converting that customer into an actual customer who buys the products.
    Answer: Integrated Sales and Marketing
  6. In larger companies, sales and operations communicate routinely and decisions that integrate the knowledge of both the market and operations happen naturally. (True/False)
    Answer: False. In smaller companies sales and operations communicate routinely and decisions that integrate the knowledge of both the market and operations happen naturally.
  7. In an organization, which department is responsible for generating leads?
    Answer: The marketing department
  8. ____________ is the art of dealing with customer response and feedback via numerous communication channels available.
    Answer: Customer Response Management
  9. ____________ is used widely for targeting a large segment of customers, keen on receiving messages on the move.
    Answer: SMS
  10. Which of the following response media provides the three different service models of ‘Immediate Assistance’, ‘Deferred
    Assistance’ and ‘Engaging’ with the company via self-service.
    a) E-mail
    b) Call centre
    c) SMS
    d) Web site
    Answer: b) Call centre
  11. CTI combines the functions of the ____________ and the ____________.
    Answer: Telephone, Computer
  12. If the calling party’s number is not in the database, CTI rejects the call. (True/False)
    Answer: False. If the calling party’s number is not in the database, then IVRS is used.
  13. ____________ allows customers to solve their problems quickly and easily by interactive mediums.
    Answer: Improving customer service
  14. The best way to retain customers is through ____________ and ____________.
    Answer: Positive relationship management and outstanding customer service
  15. In Customer Interaction Centers, customers get different levels of service depending on the method of contact used with the organization (e-mail, phone, fax, or online chat). (True/False)
    Answer: False. In CICs, customers get constant service, irrespective of the method of contact they use with the organization.
  16. It is important to provide customers with a particular point of contact and access to the combined skills and resources of the entire company. (True/False)
    Answer: True
  17. With ____________, an organization can make full use of all its customer interactions, giving it a significant competitive advantage in the drive for personalization.
    Answer: An integrated strategy
  18. ____________ is a telecommunication tool that effectively routes and distributes incoming calls in an even way to a specific group of people.
    Answer: An Automatic Call Distributor (ACD)
  19. ____________ is a technology that computerizes interactions with telephone callers.
    Answer: Interactive Voice Response (IVR)
  20. Programs that manage, control, reply and respond to the telephone calls on the IVR platform are known as IVR applications. ( True/False)
    Answer: True
  21. ____________ is the process of captivating verbal words as an input to a computer program.
    Answer: Voice recognition
  22. ____________ is a kind of speech production application. It translates standard language text into speech. (Pick the right option)
    a) Voice Speech Recognition
    b) Hosted FAQ services
    c) Text-to-Speech
    d) IVR applications
    Answer: c) Text-to-Speech (TTS)
  23. Verbal communication consists of two components ____________ and ____________.
    Answer: Physiological component and a behavioural component
  24. Through CTI a company can provide service to its customers for _ hours.
    Answer: 24 hours
  25. CTI requires the customers to re-state their identity to a new agent. (True/False)
    Answer: False. When CTI is used, customers need not re-state their identity to a new agent.
  26. TAPI stands for ____________ and exists between the and ____________.
    Answer: Telephony Application Programming Interface, Windows-equipped PC application, Telephone system.
  27. ____________ and ____________ are the popular PC telephony applications with CTI.
    Answer: Softphone, Screen pop
  28. ____________ is the API for media binding in CTI. (Pick the right option)
    a) TAPI
    b) TSAPI
    c) JTAPI
    d) MTAPI
    Answer: c) JTAPI
  29. In Web-enabled CTI, interactions with customers is through the ____________. (Pick the right option)
    a) Server
    b) Telephone switch
    c) Internet
    d) Computer
    Answer: Internet
  30. ____________ service offered through Web-enabled CTI saves money on printing and mailing.
    Answer: e-Billing
  31. The first unit to which an incoming call lands in a CTI is ____________.
    Answer: PBX or ACD
  32. The ____________ system provides the tools needed to optimally manage incoming calls.
    Answer: ACD
  33. When the agent is unavailable the call centre shuts down. (True/False)
    Answer: False. In the absence of the agent at the call centre, the ACD stores the call in a queue.
  34. Responses are ____________ in an IVRS.
    Answer: Recorded
  35. Digital voice recording is the function of ____________ unit.
    Answer: Voice logger
  36. Cumulative time spent on a project is reduced for a company investing in CTI. (True/False)
    Answer: True
  37. Operators in call centres are also called ____________.
    Answer: Agents
  38. The kick-off meeting is the place where all the project stakeholders get acquainted. (True/False)
    Answer: True
  39. In the kick-off meeting, responsibility is assigned to various team members from the ____________.
    Answer: Company’s core departments
  40. Requirements gathering is always company-centric. (True/False)
    Answer: False. Requirements gathering is always customer-centric.
  41. Discussions are held with all the _ of the company during requirements gathering. (Pick the right option)
    a) Technical staff
    b) Managers
    c) Sales personnel
    d) Stakeholders
    Answer: Stakeholders
  42. Requirements gathering reduce ____________ and ____________ overruns.
    Answer: Cost, Time
  43. The output from the requirements stage of CRM implementation is ____________.
    Answer: Requirements specification document

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Conclusion:

In the world of business, mastering Customer Relationship Management is a crucial skill. Whether you’re a student aiming to ace your CRM course or a professional seeking to enhance your expertise, practicing with MCQs can be highly beneficial. This compilation of CRM MCQs and answers is designed to be your go-to resource for effective learning and assessment. Download the Customer Relationship Management MCQs PDF, test your knowledge, and watch your CRM skills flourish.

Remember that understanding CRM concepts and applications is not only essential for academic success but also for excelling in various business roles. So, dive into the world of CRM with confidence, armed with these MCQs, and take your knowledge to new heights. Happy learning!

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