CBIT0101 CUSTOMER RELATIONS.

UNIVERSITY EXAMINATIONS: 2017/2018
EXAMINATION FOR THE CERTIFICATE IN BUSINESS INFORMATION
TECHNOLOGY
CBIT 0101: CUSTOMER RELATIONS
DATE: APRIL 2018 TIME: 1 ½ HOURS
INSTRUCTIONS: Answer Question ONE AND any OTHER TWO questions.

QUESTION ONE (30 MARKS)
a) Discuss the difference between a product-oriented business and a production-oriented
business [6 Marks]
b) Describe two ways a business can determine who are its loyal customers[4 Marks]
c) One definition of Customer Relationship Management states that it “is a strategy
used to learn more about customers’ needs and behaviors to develop stronger
relationships with them.”
(i) Give TWO ways a business learns more about its customers’ needs and
behaviours [6 Marks]
(ii)Which TWO types of CRM would a business use to learn more about its
customers’ needs and behaviours? [4 Marks]
d) “Not all customers are of equal importance”, explain this statement and give credible
examples (5 Marks)
e) To understand their customers’ tenures some businesses use a model known as a
“value ladder”, list the 5 levels of the ladder. (5 Marks)
QUESTION TWO (20 MARKS)
a) With the aid of a diagram, show the customer life cycle in a business [6 Marks]
b) Elimu Education is a private primary school in Nairobi. In the first term of 2017, the
school had 500 pupils. However, in the second term, only 450 pupils returned to
continue their studies.
(i) What is the term used to refer to the loss of existing customers? [2 Marks]
(ii) What TWO things can Elimu Education do to ensure Customer Loyalty?
[6 Marks]
(iii) What ONE process can Elimu Education automate to ensure customer
satisfaction? [3 Marks]
(iv) Give ONE reason it is important for Elimu Education to manage its
customer retention and tenure? [3 Marks]
QUESTION THREE (20 MARKS)
a) Operational CRM focuses on the automation of customer facing process. With
examples, name TWO customer facing processes and explain how they are
automated by businesses (give a good example)
[10 Marks]
b) Discuss TWO advantages of a business automating its customer facing processes
[6 Marks]
c) Give TWO reasons customer data is important to a business [4 Marks]
QUESTION FOUR (20 MARKS)
a) Robert Dwyer identified 5 phases of business- customer relationship. Name and
explain the first THREE phases of this relationship [12 Marks]
b) Discuss TWO ways in which a business can build trust with a customer [4 Marks]
c) What can a business do to show a customer that it is committed to their relationship?
[4 Marks]
QUESTION FIVE (20 MARKS)
a) Explain TWO reasons businesses would not want a relationship with customers.
[6 Marks]
b) Discuss what Partnership Relationship Management is and give a good example
[4 Marks]
c) Give ONE reason project management is important when implementing CRM
[4 Marks]
d) Describe THREE stakeholders that a business must collaborate with for successful
implementation of a CRM project [6 Marks]

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