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Upwork Sales and Marketing

Market Research Test 2016

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1. Which TWO of the following situations may cause ‘response bias’?

i)Emotive language in a survey question
ii)Delay between designing a survey and using it
iii)Using a voluntary-response method that leads to respondents not being representative of the population
iv)Using qualitative rather than quantitative methods

Answers:

  1. i and ii only
  2. i and iii only
  3. ii and iv only
  4. iii and iv only

2. What is the name for the test that assesses whether the difference between the mean score for a sample and that of the population as a whole is ‘statistically significant’?

Answers:

  1. W-test
  2. X-test
  3. Y-test
  4. Z-test

3. What is the ‘mean’ of the following data: 3, 11, 5, 6, 7, 5, 6, 5?

Answers:

  1. 5
  2. 5.5
  3. 6
  4. Impossible to tell

4. Which of the following types of companies would be LEAST interested in ‘coolhunting’ as a form of market research?

Answers:

  1. A garment/fabric store
  2. A supermarket
  3. A store specializing in electronic gadgets
  4. A record company

5. What type of measure would be gained by asking consumers to choose which company from a list was the sponsor of an advertisement?

Answers:

  1. Unaided awareness
  2. Aided awareness
  3. Recognition
  4. Preference

6. For what purpose is the ‘Schmidt-Hunter’ technique of meta-analysis used?

Answers:

  1. To determine the reliability of data.
  2. To combine the results of multiple studies.
  3. To determine the validity of data.
  4. To identify the optimal target market for a product.

7. What is the ‘modal’ value of the following: 2, 2, 2, 3, 3, 4, 5, 5?

Answers:

  1. 2
  2. 3
  3. 3.25
  4. Impossible to tell

8. 50 people are asked to respond to a question with the answers Yes/No/Don’t know on two occasions. On the first occasion, the responses were 15/25/10 and on the second 18/26/6.

What is the change in the number of positive responses as a percentage of the whole sample?

Answers:

  1. 3%
  2. 6%
  3. 9%
  4. Impossible to tell

9. Which of the following sources of market-research data would NOT contribute to a study on a retail company’s customer conversion rate?

Answers:

  1. Monitoring the number of hits on the company web site
  2. Counting the number of customers entering the company’s stores
  3. Sales data from checkouts
  4. Using a mystery shopper

10. What is the ‘range’ of the following data: 1, 1, 2, 2, 2, 3, 3, 4?

Answers:

  1. 2.5
  2. 3
  3. 8
  4. Impossible to tell

11. Which of the following statements is/are true?

i)Comparing weighted scores for key industry success factors (e.g. economies of scale) between competitors is known as ‘competitor array analysis’.
ii)Benchmarking is an effective means of identifying the best industry practice.

Answers:

  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.

12. Which of the following best describes ‘secondary’ market research?

Answers:

  1. Research that is designed to corroborate previous research
  2. Market research that relates to other companies rather than end consumers
  3. The collation of data that was previously gathered for different pieces of research
  4. Research based on data that relates to consumers’ previous habits rather than their future intentions

13. In which of the following pieces of information would a mystery shopper NOT be fundamentally interested?

Answers:

  1. Timeliness of response
  2. Technical specifications of a product
  3. Staff customer-service skills
  4. Levels of hygiene

14. What is meant by the expression ‘Type II error’?

Answers:

  1. An error caused by bias in responses
  2. An error caused by non-representative character of a sample
  3. The rejection of a true hypothesis
  4. An error caused by too small a size of the sample to draw a meaningful conclusion

15. What does a correlation of ‘-1’ between two variables indicate?

Answers:

  1. That there is a slight negative correlation between the variables.
  2. That there is no correlation between the variables.
  3. That there is a perfect negative correlation between the variables.
  4. That the variables are independent.

16. Which of the following is NOT a characteristic of ‘covert observational’ market research?

Answers:

  1. The activity is controlled and, therefore, yields consistent results.
  2. The subjects’ approval need not be sought.
  3. Results can be analyzed after the event.
  4. Behavior is not affected by the researcher.

17. Which of the following is NOT a component of the ‘marketing research mix’?

Answers:

  1. Purpose
  2. Population
  3. Product
  4. Publication

18. A PEST analysis can be used to identify the external factors affecting a market. What does the ‘P’ of PEST stand for?

Answers:

  1. Product
  2. Promotion
  3. Political
  4. Pricing

19. Which of the following MUST be true for a market that is ‘price elastic’?

Answers:

  1. A price cut causes total revenue to decrease.
  2. A price increase causes total revenue to decrease.
  3. A price cut causes the number of units sold to increase.
  4. A price increase causes the number of units sold to increase.

20. If the following responses were received regarding a statement in a survey, what is the percentage of those who opposed the statement?

Strongly agree: 86
Agree: 212
Neither agree Nor disagree: 127
Disagree:62
Strongly disagree:13

Answers:

  1. 5%
  2. 15%
  3. 20%
  4. Impossible to tell

21. If a company commissioned market research to look at the potential effect of changing an attribute of a product (e.g. its colour), what specific type of market research would it be?

Answers:

  1. Causal
  2. Observational
  3. Secondary
  4. Qualitative

22. Which of the following is NOT an ‘experimental’ form of market research?

Answers:

  1. Traffic audit
  2. Pilot roll-out
  3. Blind test
  4. Extended user test

23. Which of the following is/are problems associated with surveys as a method of market research?

i)They cannot access a large sample size.
ii)There is potential for response bias.

Answers:

  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.

24. Which of the following is an example of a ‘closed’ question?

Answers:

  1. “Why do you get up early in the morning?”
  2. “Who is your favorite baseball player?”
  3. “When shall we go to the restaurant?”
  4. “Do you like Mozart?”

25. Which of the following situations would be LEAST likely to encourage a company to consider re-positioning itself?

Answers:

  1. A pronounced change in the economic climate
  2. A reduction in production costs
  3. A sustained fall in sales
  4. A large entrant to the market

26. Companies may be forced to remain in an unprofitable market because they have, for example, invested heavily in infrastructure. What are these factors known as?

Answers:

  1. Golden handcuffs
  2. Barriers to exit
  3. Escape clauses
  4. Transfer costs

27. Which of the following conclusions should be drawn from the voting phenomenon commonly known as the ‘Bradley effect’ (or ‘Wilder effect’)?

Answers:

  1. People’s behavior does not necessarily follow their stated intentions.
  2. People do not consume as much of a product as they say they will.
  3. People are, ultimately, less concerned about ethical issues than financial ones.
  4. People will generally see through false claims.

28. Which of the following problems is caused by ‘collinearity’ within data?

Answers:

  1. It exaggerates the potential market.
  2. It causes less important factors to have a disproportionate influence on the outcome.
  3. It prevents the analysis of pricing-related factors.
  4. It makes it impossible to tell which of a number of factors caused a particular behavior.

29. If 25% of the respondents reported that they would buy product A and 48% reported they would buy product B, how many respondents would buy both?

Answers:

  1. 12%
  2. 23%
  3. 36.5%
  4. Impossible to tell

30. What is the ‘Fourt-Woodlock’ model used to make predictions?

Answers:

  1. The sales breakdown of a product by different age groups
  2. Product sales, based on the number of trial purchases converted into repeat purchases
  3. Seasonal variation in demand for a product
  4. Sales volumes at each stage of the product life-cycle

31. What sub-set of a set of data is covered by the ‘box’ element of a box-and-whisker diagram (or ‘box plot’)?

Answers:

  1. The first and second quartiles
  2. The second and third quartiles
  3. The third and fourth quartiles
  4. The first and fourth quartiles

32. What is the name given to the effect whereby people carry out an activity differently if the management is taking an interest in or monitoring them?

Answers:

  1. Eddington effect
  2. Fowlds effect
  3. Hawthorne effect
  4. Norton effect

33. Market research can be used to characterize a particular market. Which of the following characterizes a ‘perfect’ market?

Answers:

  1. High barriers to entry, many sellers
  2. High barriers to entry, few sellers
  3. Low barriers to entry, few sellers
  4. Low barriers to entry, many sellers

34. Which of the following statements is/are true?

i)The data on which secondary market research is based is unlikely to be tailored precisely to the requirements of the task.
ii)Secondary market research tends to be more expensive than primary research.

Answers:

  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.

35. What does it mean to say that a test is “significant at the 2% level”?

Answers:

  1. That 2% of the respondents agreed with the assertion.
  2. That 98% of the respondents agreed with the assertion.
  3. That 52% of the respondents agreed with the assertion.
  4. That there is a 2% chance of a false-positive result.

36. Forecasting is made difficult by the fact that tiny initial variations can have significant long-term effects. What is this phenomenon known as?

Answers:

  1. Elephant effect
  2. Butterfly effect
  3. Hummingbird effect
  4. Grasshopper effect

37. Which of the following goals is most commonly associated with the use of ‘projective’ techniques in market research?

Answers:

  1. To identify the target market for a product
  2. To identify the best mediums in which to advertise a product
  3. To identify how to increase market share
  4. To identify the feelings associated with a brand

38. Which of the following is NOT a problem associated with postal surveys?

Answers:

  1. Follow-up questions cannot be asked.
  2. Respondents do not get time to consider responses.
  3. Response rate is low.
  4. Collating data is time-consuming.

39. Which of the following is a statistical measure used to calculate how widely-spread a set of data is?

Answers:

  1. Standard deviation
  2. Correlation
  3. Regression analysis
  4. Median

40. Which of the following is/are typical problems associated with ‘observational’ market research?

i) It increases the potential for bias.
ii) It reveals little about motivation.iii) It relies on the honesty of the participants.

Answers:

  1. None of the above
  2. i only
  3. ii only
  4. iii only

41. Which of the following best describes the phenomenon of ‘optimism bias’?

Answers:

  1. The tendency to assume that things will work out well
  2. The tendency to assume that things will work out badly
  3. The overestimation of low-probability negative outcomes
  4. The underestimation of low-probability positive outcomes

42. Which of the following is true of a market with a ‘zero-profit condition’?

Answers:

  1. New companies are unlikely to enter because profit margins are low.
  2. Only not-for-profit organizations are allowed.
  3. New companies can easily enter the market, preventing those in the market from making high profits.
  4. New entrants will make a profit only after having been several years in the market.

43. It is important that surveys actually measure what they are intended to. Which of the following terms describes this consideration?

Answers:

  1. Validity
  2. Reliability
  3. Significance
  4. Generalizability

44. Which of the following is/are typical ‘barriers to entry’?

i)Existing contracts held by the company
ii)Redundancy costs
iii)Equipment that cannot be sold or reconfigured

Answers:

  1. None of the above
  2. i only
  3. ii only
  4. iii only

45. Which of the following best characterizes face-to-face surveys relative to other types of surveys?

Answers:

  1. Low response rate, low cost
  2. Low response rate, high cost
  3. High response rate, low cost
  4. High response rate, high cost

46. Which of the following is NOT a function performed by the ‘management information’ system?

Answers:

  1. Data gathering and data processing
  2. The formulation of hypotheses
  3. The dissemination of information to marketing managers
  4. Storage and retention of data

47. Which of the following are reasons for a company undertaking ‘price elasticity analysis’?

i)Determining the types of people who buy a product
ii)Identifying ‘price points’ in the market for a product
iii)Investigating the effects of price changes on sales

Answers:

  1. i and ii
  2. i and iii
  3. ii and iii
  4. All of the above

48. Which of the following models the process by which new products are taken up amongst a population of potential customers?

Answers:

  1. Taylor’s exchange theorem
  2. Harvey’s spread algorithm
  3. Bass diffusion model
  4. Young’s flow diagram

49. To what end do market researchers use ‘choice modeling’?

Answers:

  1. To determine the best wording of questions in surveys
  2. To make predictions about human decision making behavior
  3. To test possible marketing material on consumers
  4. To optimize product placement

50. Which of the following best defines the term ‘Market Segmentation’?

Answers:

  1. The grouping of consumers on the basis of similar needs
  2. The division of staff into sales teams along geographical lines
  3. The categorization of people by the volume of consumption
  4. The preparation of the marketing campaign for the target market

51. Which of the following statements is/are true?

i)Data can be extrapolated to predict future behavior.
ii)A moving average can be used to reduce the impact of anomalies in data.

Answers:

  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.

52. Which of the following statements is/are true of ‘choice modeling’?

i)It permits the respondents to behave strategically.ii)It compels the respondents to consider compromises between mutually-incompatible features.

Answers:

  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.

53. Which of the following would NOT be a primary reason for analyzing demographic information collected as part of a survey?

Answers:

  1. To ensure that the sample was representative
  2. To be able to compare the responses of different types of people
  3. To check that the researchers had not faked the data
  4. To help identify the target audience for a product

54. What does the ‘Dirichlet model’ seek to describe?

Answers:

  1. The product life-cycle
  2. The relationship between marketing and sales
  3. The effect of elasticity of demand on revenue
  4. Brand loyalty and repeat purchases

55. Which of the following statements is/are true?

i)A ‘longitudinal’ survey is one where the same set of respondents complete the same survey on two or more occasions.
ii)A ‘cross-sectional’ survey is one where the same set of respondents complete different surveys on two or more occasions.

Answers:

  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.

56. Which of the following best describes ‘syndicated’ market research?

Answers:

  1. Research based on data generated to meet a specific client’s requirements
  2. Research based on data gathered in response to a national Government’s requirements
  3. Research that is conducted to be sold to multiple clients
  4. Research outsourced by an organization to a dedicated market-research company

57. Which of the following best describes the technique of ‘A/B testing’ (or ‘split testing’)?

Answers:

  1. Using multiple versions of advertising materials to determine which is most effective
  2. Asking consumers to compare two products in a blind test
  3. Testing a product on two distinct groups of consumers
  4. Seeking feedback from the same consumers twice with a set interval between

58. Which of the following survey questions would be most likely to yield unbiased responses?

Answers:

  1. “Isn’t it a bad idea to raise taxes?”
  2. “It’s a bad idea to raise taxes, isn’t it?”
  3. “Lots of people are struggling to make ends meet. Do you think taxes should have been raised?”
  4. “What do you think of the decision to raise taxes?”

59. What is meant by the term ‘hypothesis’?

Answers:

  1. A situation that is not real
  2. An assertion to be tested
  3. An option in a multiple-choice question
  4. A sub-group of respondents

60. Which of the following is NOT an example of ‘observational’ market research?

Answers:

  1. The use of electronic checkout scanners to record purchase behavior
  2. Monitoring which television channel is being watched
  3. Analyzing people’s web-browsing history
  4. Using a focus group

61. What is the name of the forecasting method whereby a panel of independent experts answer questionnaires in two or more rounds in order to converge on the correct answer?

Answers:

  1. The Delphi method
  2. The Athens method
  3. The Apollo method
  4. The Oracle method

62. What is the ‘interquartile range’ of the following data: 10, 6, 12, 8, 2, 6, 4?

Answers:

  1. 4
  2. 4.5
  3. 6
  4. Impossible to tell

63. What is the ‘median’ value of the following data: 1.5, 5, 3.5, 2, 4, 2.5, 1.5, 3?

Answers:

  1. 2.5
  2. 2.75
  3. 2.875
  4. Impossible to tell

64. Which of the following best describes the market research related term ‘sugging’?

Answers:

  1. Seeking funds by pretending to be a research organization
  2. Manipulating statistics to produce a favorable result
  3. Exploiting market research conducted by other organizations
  4. Using market research as a cover for generating business

65. Which of the following is NOT typically a qualitative method of market research?

Answers:

  1. Using an on-line research community
  2. Using a mystery shopper
  3. Using a focus group
  4. A survey using the Likert scale

66. ‘Scenario planning’ can be used to draw conclusions about the future state of a market. Which of the following best characterizes this approach?

Answers:

  1. Comparison with past examples to predict likely outcomes
  2. Considering multiple possible situations so that the organization can respond to a range of eventualities
  3. Concentrating on the highest-probability outcome so a detailed contingency plan is in place
  4. Conducting computerized simulations to model future situations

67. Competing brands can be placed on a graph to illustrate their market positioning and thereby identify potential niches. What is the term for this analytical technique?

Answers:

  1. Brand analysis
  2. Force-field analysis
  3. Product placement
  4. Perceptual mapping

68. Which of the following does NOT feature in Porter’s ‘five forces analysis’?

Answers:

  1. Bargaining power of the suppliers
  2. Bargaining power of the customers
  3. Threat of international competition
  4. Competitive rivalry within an industry

69. Before which of the following decisions would it be LEAST sensible for a company to undertake market analysis?

Answers:

  1. Whether to expand the workforce
  2. Whether to purchase a new plant
  3. How much to pay to the staff
  4. How much raw material to buy

70. Which of the following terms concerns applying statistical methods to the deduction of economic principles?

Answers:

  1. Causality
  2. Econometrics
  3. Demographics
  4. Predictive analytics

71. Which of the following statements is/are true?

i)Small changes in the wording of a survey question can have a significant effect on respondents’ answers.
ii)If the sample size for a survey is large enough, predictions about consumer behavior can, effectively, be made completely accurate.

Answers:

  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.

72. Because probabilistic predictions are not always accurate, market researchers may generate a representative sample of the possible future states. What is this forecasting approach known as?

Answers:

  1. Multiple forecasting
  2. Conjoint forecasting
  3. Ensemble forecasting
  4. Combined forecasting

73. How many levels are usually there on a Likert scale?

Answers:

  1. 8-9
  2. 6-7
  3. 5-7
  4. 2-3

74. Which of the following statements is/are true?

i) Market researchers must be objective.
ii) Market research comprises analysis and predictions of consumer behavior.

Answers:

  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.

75. Which of the following best describes the purpose of ‘Ad Tracking’?

Answers:

  1. To calculate the cost of a marketing campaign
  2. Advanced engagement with consumers to confirm that an advertisement will be popular
  3. To verify that the design process for an advertisement follows the required steps
  4. To check the effectiveness of marketing activities

76. To what end is ‘conjoint analysis’ used?

Answers:

  1. To assess the relative importance of different product features
  2. To calculate the likely impact of external factors on demand
  3. To determine the most effective marketing medium for a product
  4. To compare a product with that of a competitor

77. Which TWO of the following are issues associated with ‘benchmarking’?

i)It leads to increased production costs.
ii)It can be difficult to obtain the necessary data.
iii)Comparison with market leaders is not a helpful process.
iv)Organizations are not necessarily directly comparable.

Answers:

  1. i and ii only
  2. i and iii only
  3. ii and iv only
  4. iii and iv only

78. Which of the following types of sampling involves selecting a set number (which need not be the same) of a distinct sub-group (or ‘stratum’)?

Answers:

  1. Quota sampling
  2. Simple random sampling
  3. Systematic sampling
  4. Probability sampling

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Upwork Sales and Marketing

Customer Service Test 2016

Published by:

1. What is the importance of consistency while offering customer service to different people?

Answers:

  1. Not important – Customers o      ly know what they experience and can not compare the service they get with that offered to others.
  2. Very important – Customers expect a consistent level of service when dealing with a company.
  3. Important only for large companies, not for small ones
  4. Important only for small firms since they rely on customer referrals

2. What should the customer service representative do when a customer is yelling?

Answers:

  1. Yell back at them
  2. Not respond and hang up
  3. Sound anxious
  4. Keep a calm, lower tone to calm the customer down

3. What is customer profiling?

Answers:

  1. Reporting customer data to government agencies
  2. A customer filling in a profile online
  3. Using customer data to determine an overall company marketing campaign
  4. Using a series of data points to place customers into groups and tailoring their experience with your company

4. Which of the following is a customer need?

Answers:

  1. Premium pricing
  2. Experienced management
  3. Friendly customer service
  4. Growing financial performance

5. Why should a firm say they are sorry even if they feel the customer is wrong?

Answers:

  1. The firm can later tell the customer he/she was actually the wrong one, after he/she has calmed down.
  2. The firm should always take the blame and learn from it.
  3. The focus should be on finding out what would satisfy the customer and solving the problem, not determining blame.
  4. They can later put the blame on a third party.

6. How can a company’s online ordering process be made more customer friendly?

Answers:

  1. Ask for lots of details so the customer can be catered to in the future.
  2. Try to sell customers additional products and services unsolicited.
  3. Place ads on the order page for additional products.
  4. Only ask for information necessary to process the order.

7. Why is it important to pace your tone on the phone with the other person?

Answers:

  1. It automatically makes them assume they will get what they want.
  2. It creates rapport with the customer and puts them at ease.
  3. If the person talks fast, it means they are in a rush and you should also do the same.
  4. It tells the customer you are someone they can trust.

8. What is the importance of customer oriented goodwill?

Answers:

  1. It allows for cheaper resolutions to customer conflict.
  2. It is a good substitute for good customer service.
  3. It allows the management to measure how well customer service is being performed.
  4. It puts the company ahead of the competitors in respect of customer service.

9. How do CRM(Customer Relationship Management) systems help in sending a consistent message to customers?

Answers:

  1. The same draft of an email can be sent to every single customer thus ensuring consistency.
  2. They are used for all marketing efforts of a company.
  3. Information can be distributed via the CRM system for sending the same message to all the customers in the same group.
  4. The CRM system always works as the back end for the company website.

10. What should be the ultimate goal of problem solving with the customer?

Answers:

  1. To save the company money
  2. To get them off the phone quickly
  3. To get referrals to other customers
  4. To make them happy

11. What would be a good opening line in replying to an irate customer’s email?
Answers:

  1. Please call customer service.
  2. We are glad you are enjoying our product/service.
  3. Thank you for your email, we are sorry to hear about the problem you have.
  4. We will get back to you within 7 days.

12. Why do customers feel the need of some control in working to resolve an issue with a company?

Answers:

  1. They feel they are getting more for their money.
  2. Customers feel that this way, they can get whatever they want, at least temporarily.
  3. It ensures the customer will buy again.
  4. It puts them in a positive mood and allows them to help guide the resolution

13. What would a monotone and flat voice indicate to a customer?

Answers:

  1. The person is energetic and wants to help.
  2. The person is bored and uninterested in the conversation.
  3. The person is angry.
  4. The person doesn’t believe what they are hearing.

14. How can a company create an atmosphere of continuous improvement and have employees who strive to perform?

Answers:

  1. By reducing headcount by 10% each year
  2. By making it mandatory for the employees to attend company meetings
  3. By offering incentives, both financial and non financial, for good performance
  4. By telling the employees that mystery callers will evaluate them

15. What is meant by a “care token”?

Answers:

  1. To handle customers who are not happy with the company “with care”
  2. A gesture made by the company to retain a customer after his/her having experienced bad customer service
  3. A gesture made by the company as a last resort to get the customer to leave
  4. A bonus to exceptionally good customer service agents

16. What is the first step in dealing with a customer when he/she is irate?

Answers:

  1. Tell him/her to be quiet and listen.
  2. Tell him/her to call back when he/she has calmed down.
  3. Ask the customer what can be done to solve the problem.
  4. Let the customer give vent to his/her feelings and do not try to interrupt him/her.

17. Which of the following would a customer not expect from a customer service agent?

Answers:

  1. Discretion
  2. Rudeness
  3. Effectiveness
  4. Authenticity

18. What would perfect customer relationship management entail?

Answers:

  1. Saving the company money
  2. Immediate customer gratification and personalized interactions with each customer
  3. Reducing the call times of customer complaints
  4. Increased visibility into the financial situation of the company

19. Which of the following would be a measurable aspect of customer service?

Answers:

  1. The number of products sold
  2. An overall customer satisfaction rating of 90%
  3. How displeased customers are in general
  4. A profit margin of 30%

20. Where should firms start while working on a strategy for customer service?

Answers:

  1. Survey the customers to get their feedback and to find out their needs and expectations of the firm.
  2. Copy what the competition is doing.
  3. Ask the employees what strategies they want to be implemented.
  4. Look for the standard customer service strategy employed in the country of operation.

21. What are the two factors to consider when Creating Customer Service Strategy?

Answers:

  1. Employee reception to the plan, and customer reception to the plan
  2. The cost of implementing, and employee reception
  3. The time needed to create and implement, and the cost of implementation
  4. The competition’s as well as the customers’ reaction to the plan

22. Why do the customers’ needs change according to the nature of the situation?

Answers:

  1. People are fickle and want different things even in the same situation depending on different occasions.
  2. Needs are different depending on what the customer values as important under the circumstances.
  3. Needs changed according to the financial situation of the customer at the time.
  4. The customer can probably be talked into focusing on their wants instead of needs.

23. Why is giving a customer the required information considered good customer service?

Answers:

  1. It makes the customer feel they got something for nothing.
  2. It makes the customer feel guilty if they ever have a problem.
  3. It allows you to upsell to the customer something they do not need.
  4. It allows you to add value for the customer and help them make an informed decision.

24. Which of the following would be the best way to offer customer service online?

Answers:

  1. To make a form people can submit available online
  2. To supply answers to FAQ’s online
  3. To make live chat with company representatives available 24/7
  4. To make company phone number available online

25. What is meant by “data mining”?

Answers:

  1. Creating specialized reports
  2. Entering data into a data base
  3. Calling customers to survey them
  4. Sifting through vast amounts of data by focusing on specific attributes

26. What is meant by inflection?

Answers:

  1. The accent you talk in, depending on your country
  2. The highs and lows of your voice, which let the customer know how interested you are in talking to them
  3. The pace at which you speak, which lets the customer know if you are in a rush or not
  4. The general attitude you convey to a customer

27. What is a data warehouse?

Answers:

  1. A single database for the CRM program
  2. The physical warehouse where the company servers are stored
  3. A database that stores information from several other data sources, allowing a CRM system to query multiple databases from one location
  4. A program that is used to create financial reports

28. What is meant by taking a top down approach to creating a strategy?

Answers:

  1. Having customer service agents work in management
  2. Creating high level initiatives only
  3. Starting by building strategies upwards from the customer level
  4. Having high level managers work in customer service for a short period of time so they can experience it before laying down policies

29. What final step can be taken to put your firm’s customer service above that of all others?

Answers:

  1. Offer to refund more than the product value.
  2. Let customers know what the standard procedure for handling irate customers is up front.
  3. Give the customers time to cool off by asking them to call back later.
  4. Follow up with customers after the fact to make sure they are happy with the resolution.

30. Why would a company want to know the profitability and sales history of customers?

Answers:

  1. They would automatically drop the lowest 10% of customers.
  2. They can ask the higher sales clients to act as representatives of the company.
  3. It offers the company potential for directing their marketing campaigns effectively on the basis of their buying habits.
  4. They can find out who owes the company money.

31. What should be the first thing to be done in problem solving?

Answers:

  1. Verify the information the customer has provided and any additional facts if required.
  2. Tell the customer they will get whatever they want.
  3. Tell the customer you’ll see what you can do but not to expect much.
  4. Look for errors in the customer’s story.

32. How important is it for the top management to be involved in Creating Customer Service Strategy?

Answers:

  1. Very important – The top management has to be committed to it and offer the maximum support.
  2. Not important at all – The employees at the customer level should decide the strategy.
  3. Important only in small companies, not large corporations
  4. Important only in large companies. Smaller companies do not need to worry about customer service strategy.

33. How should a customer service representative determine what avenues to pursue to make a customer happy?

Answers:

  1. Follow a standard company protocol.
  2. Ask the customer what resolution they would like to see.
  3. Determine what would be the cheapest alternative that would make the customer happy.
  4. Offer to replace their product regardless of their problem.

34. What should be done at the end of a phone call with a customer after resolving an issue they had?

Answers:

  1. Try to sell them something new.
  2. Ask them to write a nice letter to the company praising the customer service agent.
  3. Tell them only the first customer service call is free.
  4. Repeat to the customer what you resolved and any further actions you’ll be taking.

35. What does CRM software allow a company to do?

Answers:

  1. Create one to many relationships with customer groups
  2. Create many to one relationships with customers
  3. Send financial reports to the management
  4. Create a one to one relationship with each customer.

36. What should be said to a customer when putting them on hold?

Answers:

  1. Say nothing. Just put them on hold.
  2. Say “just a minute”; then put them on hold.
  3. Ask them first if it is okay to put them on hold for a moment.
  4. Tell them they need to hold for several minutes.

37. What general rule does phone etiquette require customer service representatives to follow?

Answers:

  1. Ask the other party how you can help them.
  2. Say “Hello?” then pause.
  3. Ask them for their name or customer number before greeting them.
  4. Try to redirect the caller to someone else.

38. How should a customer service strategy plan be distributed to the employees?

Answers:

  1. By sending a mass email
  2. By telling only those who directly deal with the customers
  3. By emphasizing the management’s commitment to the plan at a company-wide meeting
  4. It should be confined to the top management.

39. What is meant by a “hard no”?

Answers:

  1. Saying ‘no’ to the customer but offering alternatives
  2. Saying ‘yes’ to the customer at first but switching to ‘no’ later
  3. Saying ‘yes’ to the customer with no intention of following through
  4. Saying ‘no’ to the customer and offering no alternative solution

40. What is the purpose of FAQ’s (frequently asked questions)?

Answers:

  1. To give the website more content which looks impressive
  2. To spur the customers to ask additional questions
  3. To position the company as an industry leader
  4. To answer questions customers often have so they can easily find the answer without having to ask

41. What would be the best way to handle an email inquiry?

Answers:

  1. Ignoring the email and seeing if they email a second time
  2. An immediate automatic email response letting the customer know someone will reply within 24 hours, followed up
  3. by a reply from a customer service representative within 24 hours
  4. Informing them the answer is in the company FAQs and they should look there
  5. Replying to the email a week later after investigating

42. What does a customer with a problem expect from a customer service representative?

Answers:

  1. Discounts and coupons
  2. The management’s commitment to the growth of the firm
  3. An aggressive tone
  4. Understanding and empathy

43. What is the disadvantage of email based customer service?

Answers:

  1. It is more cost effective than other methods.
  2. It allows the company to respond quickly.
  3. It gives the company a trail of communications with the customer.
  4. It is unemotional and doesn’t always allow the customer to convey the importance of their question or issue.

44. What is a continuous improvement plan?

Answers:

  1. A predetermined plan to continually help the employees keep themselves informed of the company’s latest initiatives in order ultimately to make themselves better at customer service
  2. A plan to educate the consumer about the products
  3. A plan to help the management understand the customers’ needs better
  4. A predetermined plan to help the employees learn more about the company’s financial situation and the company’s need to perform better

45. What is the first step in mollifying a customer who has received bad service?

Answers:

  1. Ask the customer what the problem is.
  2. Try to offer him/her something for free to pacify him/her.
  3. Ask him/her to submit a complaint first.
  4. Express regrets and promise to provide better service in future.

46. What should be done with an irate customer after they have vented out and explained their situation?

Answers:

  1. Ask them to call back later when they have calmed down.
  2. Express empathy.
  3. Put them on hold and pass them onto a manager.
  4. Issue them a refund regardless of the problem.

47. What would be the two needs of a customer when visiting a theme park?

Answers:

  1. Safety and Fun
  2. Accuracy and Certainty
  3. Efficiency and Seriousness
  4. Low cost and Tranquility

48. Which of the following would be the best thing to say to an irate customer?

Answers:

  1. Please call back later.
  2. I’ll have to ask my manager to approve what you are asking for.
  3. I can see why you feel that way.
  4. Why didn’t you buy a competitor’s product.

49. What approach should a firm take when they need to say ‘no’ to a customer?

Answers:

  1. Say ‘no’ up front, being honest.
  2. Do not say ‘no’, but later do not deliver on the alternative solutions.
  3. Pretend everything is good, but towards the end of the conversation, tell them you did not mean what you said and actually the answer is ‘no’.
  4. Do not say ‘no’, but offer alternative solutions.

50. What is the primary purpose of setting goals of customer service?

Answers:

  1. To know when no more customer service needs to be provided
  2. To compare the firm’s strategy with that of the competitors
  3. To create measurable objectives which the firm can strive to meet
  4. To allow for customer service agents to be promoted on the basis of their performance

51. Which of the following would be a potential segmenting factor for customers?

Answers:

  1. Age range
  2. Zip code
  3. The industry they work in
  4. All of the above

52. Which of the following is an example of a care token?

Answers:

  1. A computer manufacturer fixes your new laptop under warranty
  2. A retail chain accepts your return
  3. Offering an employee a raise for good performance
  4. A restaurant gives you a free glass of wine because you mention to the waiter you didn’t enjoy the wine like you had hoped

53. How important is the tone of voice when talking to someone on the phone?

Answers:

  1. Extremely important
  2. Not important at all
  3. Slightly important
  4. Depends on the situation

54. What is the advantage of email based customer service?

Answers:

  1. It makes dealing with irate customers easier.
  2. It provides an easy reference to past communication with the client.
  3. It is impersonal.
  4. Canned responses can be sent back.

55. Which of the following would be considered going the extra mile in resolving a past customer service issue?

Answers:

  1. Replacing an item under warranty
  2. Answering a call within two minutes
  3. Absorbing any extra costs such as shipping costs incurred by the customer as a result of the problem
  4. Sending him/her a complaint form to fill out

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