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Examination Paper of Customer Relationship management
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IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Customer Relationship Management
Section A: Objective Type & Short Questions (30 Marks)
This section consists of Multiple Choice & Short Note type questions.
Answer all the questions.
Part One carries 1 mark each & Part Two carries 4 marks each.
Part One:
Multiple Choices:
1. High congruence means:
a. High probability of success
b. Low probability of success
c. Zero probability of success
d. None
2. Novo Jim‟s excellent resource book for Recency, Frequency and Monetary is:
a. Drilling high
b. Digging the top
c. Cutting edges
d. Drilling down
3. In „FURPS‟ R stands for___________
a. Responsibility
b. Resource
c. Retention
d. Reliability
4. NAICS stands for_____________
a. National American Industry Coding System
b. North American Industry Cooling System
c. National American Industry Cooling System
d. North American Industry Coding System
5. The book „Reengineering the corporation‟ is written by:
a. Michael Hammer and James Champy
b. Michael Champy and James Hammer
c. Michael Douglus and James Ferrari
d. Michael Ferrari and James Douglus
6. The book „Building the Data warehouse‟ is written by:
a. Michael Doglus
b. James Champy
c. Bill Inmon
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d. James Ferrari
7. Which of the following is considered as the bible of database marketing?
a. „Drilling High‟
b. „Building the Data warehouse‟
c. „The complete database marketer‟
d. „Drilling down‟
8. CASE stands for____________
a. Customer Aided Software Engineering
b. Computer Aided Software Engineering
c. Customer Aided System Engineering
d. Computer Aided System Engineering
9. In „BBB‟ B stands for____________
a. Bail
b. Buffer
c. Bureau
d. Block
10. If high quality is one of the attribute then:
a. It will be suicidal to ship products with high DOA
b. It will be beneficial to ship products with high DOA
c. It will be suicidal to ship products with low DOA
d. It will be beneficial to ship products with low DOA
Part Two:
1. Why e- CRM is important in present life?
2. Describe the 3 phases of „Waterfall Model‟.
3. Explain the type of CRM in short?
4. What is „Life time value‟ related with customer?
5. What are „Warehouse data(s)‟?
Section B: Caselets (40 marks)
This section consists of Caselets.
Answer all the questions.
Each caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 200 to 250 words).
END OF SECTION A
SESSECTION A
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Caselet 1
Project Energized:
Indian Synthetics Limited was established in the year 1987 by Seth Gopichand, who was an NRI based
in Singapore. The company‟s main products were blended synthetics, polyester and cotton yarn; which
were suitable for readymade garments. The company had achieved an outstanding success with an
annual turnover of Rs. 1,500 crores and was awarded the „Exporter of the Year Award‟ since 1988, for
four consecutive years by the Government of India. Encouraged by the profitability of the Jabalpur
plant, the company set up another manufacturing plant at Nasik. The company was a typically family
run business wherein no outsiders were inducted at the top management positions. Even the Chartered
Accountant was from the family. The plant at Jabalpur had 1,300 workers with an average age of 28
years and an educational qualification of either high school or secondary school. 60 percent of the
workers were from Bihar and the rest were from Orissa. They were highly paid with reference to the
industry average and were provided with residential accommodation on the factory premises. All the
employees were men with no woman employee on the plant‟s payroll. Among the workers and staff it
was common that the management had not initiated the appointment. Since the past 12 years of its
existence, the company was functioning in a traditional pattern in spite of the modernization of the
plant and had no HR practices whatsoever. With the growing competition in the market, the
profitability of the plant had declined which greatly concerned the top management. After reviewing
the situation, it was found that the human element was the biggest hurdle in achieving the set targets.
There was a need to bring in attitudinal change, as both, the absenteeism and the union interference
were high. This union was formed after the workers had felt that the management was exploiting them.
Most of the workers had been there since the inception of the plant and the turnover was almost
negligible. There was a strong union present in the plant, which was affiliated to INTUC. The plant
managers entered into a long term settlement with the union to set the daily wages and the terms and
conditions of work. The long term settlement was renewed every 3 years. The workers were working
in 30-day night shifts in a month. Being a textile unit, it was a process industry wherein hurdle at one
point of the process would stop the whole production. Moreover, if there were delay in the takeover of
the shift, the output of the entire day would be affected. In the matters of indiscipline, the workers
were charge sheeted and dismissed arbitrarily. In chronic cases, the worker had to wear a badge with a
slogan “I will not repeat the mistake again” for the entire day on his uniform.
The company started thinking of corporate governance and hired the services of Narayan Murthy,
AGM (P & A and ER) for the Jabalpur plant in May 2001. Since its establishment, the plant had seen
eight Personnel Managers come and go. Narayan Murthy who was in his late thirties had been working
with a multi-national company and had a wide exposure to the human resource practices. He was given
complete autonomy by the corporate office to transform the existing organizational culture. After
Narayan Murthy took over the charge, he formed the “Workers Committee” with one representative
who would frame the report, discuss with him and help out in counseling the workers. He changed the
traditional designations like the “Khata Adhikari” to the “Shop Floor Manager”. He also made training
and development programs, an integral part of the employee development. His first attempt in this
direction was an ice-breaking workshop called the “Project Energized” which was conducted by
women trainers. To bring women closer to the system, he had taken an initiative to form a ladies‟ club
for the wives of all the employees, which became an uphill task for him as he was facing a lot of
problems in getting the people together. Narayan Murthy also introduced the concept of multi-skilling
where the worker was persuaded to work in different stages of the process. Although, the worker did
not get a monetary incentive for the same, he developed enrichment of the skills. Many a times the
union resisted to this and then the supervisor had to tackle the situation diplomatically. Another
measure, which Murthy adopted, was to develop an incentive plan for the workers. Any worker who
recorded 26 attendances in a month was given an extra Rs. 10 per day for the month, and so on till 23
attendances per month. Any worker who recorded 26 attendances consecutively for three months was
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given an additional benefit of Rs 500. 100 employees responded positively to this scheme. He also
started educating the union and was planning to provide an office and separate notice board for the
union office bearers. He was also planning to reduce the 30 days night shift to 15 days night shift per
month. As per this agenda, he had also planned to employ a lady as the Deputy Manager of Training,
preferably more than 35 years of age who was expected to have completed the social obligations in
terms of her marriage and child rearing. He felt that a woman would be more successful in overcoming
the suspicion among the workers towards the management as he had observed that the workers were
receptive to women summer trainees who had visited the plant for about six weeks last summer. Even
at the Nasik plant, when a lady doctor was appointed as a physician, the workers went in for a strike
objecting the appointment. The workers had afterwards shown a positive response though they had
initially shown a stiff resistance to her appointment. In spite of taking these measures, Murthy felt that
there was too much interference from the union and the employees were not enthusiastic about the
changes. And he wondered what else he should do to transform the culture of the organization.
Questions:
1. In what way would multi-skilling help in solving the problems of the plant?
2. Do you think that the company‟s policy of entering into term settlement is appropriate? Give
reasons.
Caselet 2
Mitsubishi Motor Sales: Implementing Customer Relationship Management Systems
Until the late 1990s, Mitsubishi Motor Sales of America Inc. was only about cars and its approach to
retail customer service reflected that. There were more than 18 toll-free customer service numbers that
callers had to navigate to find information on topics ranging from financing to sales to repairs, “We
were fragmented in our approach, and we clearly lacked a customer focus,” says Greg O‟Neill,
executive vice president and general manager.Mitsubishi decided to change that. As part of a
company-wide shift to an increased focus on customers, executives challenged the call center to
provide “one voice and one set of ears for the customer,” says CIO Tony Romero. That was the
beginning of a continuing drive toward improved customer service through a customer relationship
management (CRM) initiative that would eventually engage multiple departments and 18 vendors.
Today, Mitsubishi has one call center and an outsourced service provider that handles the most
basic calls. The cost per call has decreased by about two-thirds, and that savings alone paid for the
system in 18 months, according to Rich Donnelson, director of customer relations. The system saves
agents time and uncertainty and enabled the call center to handle 38 percent more volume, with an
even staffing level. Meanwhile, the company‟s customer satisfaction rate rose by 8 percent, according
to a survey by J.D. Power and Associates. Mitsubishi call center project team included members from
its sales, marketing, finance, and IT departments, all of which contributed resources as needed. Early
on, the team members established some rules of the road. First, they would selectively choose best-ofbreed
CRM software components, not the integrated CRM suits that seemed intent on force-fitting
Mitsubishi‟s needs into fixed product offerings. But that required a constant struggle to keep 18
vendors heading in the same direction. The team members also decided to implement changes slowly,
adding a technology only when all employees were using the last one implemented. This approach
allowed call center agents to get comfortable with the new technology over time. To accommodate the
deliberate, modular approach, all products had to pass the “three S” test: Is it simple? Does it satisfy?
Is it scalable? “If we couldn‟t answer yes to all three, we didn‟t do it,” says Greg Stahl, Mitsubishi‟s
director of advertising. The journey began in earnest in June 1999, when Mitsubishi chose to outsource
its most basic level of customer calls to Baltimore-based Sitel Corp. within two months, Mitsubishi‟s
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18 toll-free customer numbers and the multiple call centers behind them were consolidated, and call
center software from Siebel Systems was implemented. Also, as part of the companywide customer
focus, a new customer-centric data-base was consolidated in-house the next year. The database became
the engine powering the call center, but unfortunately, dirty data were a major stumbling block. The
project stalled for months as the data were cleansed and updated.
In early 2001, a digital phone switch from Avaya Inc. was installed that allowed flexible skillsbased
call routing. Callers to the single toll-free number routed on menu choices. About half the callers
got the information they needed from an interactive voice response unit, which can answer fairly
sophisticated queries without live contact. Simple calls went to Sitel, and the rest were routed to call
center agents with appropriate skills. In March 2001, graphical user interface upgrades put 11 screens‟
worth of customer information on one screen of call center agents. And Smart Scripts workflow
software from Siebel provided agents with decision-tree scripts and automated customer
correspondence. In May 2001, Mitsubishi managers began listening to outsourced service calls, and
they could see agents‟ screens with Avaya IP Agent software. The next month, the company started
using workforce management software from Blue Pumpkin Software to hourly forecast call center
coverage. Then Nice log software from Nice Systems was installed to record agents‟ voice and screen
activity for quality assurance and training.
Aside from happier customers, the benefits to call center employees include career growth and
higher pay. Previously, agents in separate call centers handled specific areas: accounts, vehicles, titles,
or retailer queries. Now the silos are gone and agents can learn new skills in multiple areas, greatly
increasing call center flexibility. The workforce management software schedules training time during
lags, and agents who learn multiple skills earn more money. Call center turnover, which has
traditionally been more than 20 percent, was about 7 percent last year. O‟Neill says the executive team
members regularly listen in on service calls to get a feel for customer concerns, and they act on what
they hear. “ that bubble up of information has driven more early marketing decisions and made us
more effective earlier on than I could have ever thought,” O‟Neill says. “That‟s been a huge dividend.”
Questions:
1. What are the key application components of Mitsubishi‟s CRM system? What is the business
purpose of each of them?
2. Do you approve of Mitsubishi‟s approach to acquiring and installing its CRM system? Why or
why not?
Section C: Applied Theory (30 marks)
This section consists of Long Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words).
END OF SECTION B
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1. What is the CRM? Define all the Customer Retention Strategies.
2. If all the numbers are large, the project is way too big. Can you identify a logical chunk of the
problem that would make a setup toward improving the situation? What kind of “offer” would
you want to make to your customers as a result of completing the small chunk?
END OF SECTION C
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IIBM Institute of Business Management
Examination Paper MM.100
Services Marketing
Section A: Objective Type & Short Questions (30 Marks)
This section consists of Multiple Choice & Short Note type questions.
Answer all the questions.
Part One carries 1 mark each & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. The extent to which customers recognize and willing to accept this variation is called:
a. Zone of tolerance
b. Zone of fitness
c. Zone of acceptance
d. None
2. SERVQUAL is used to measure service quality. (T/F)
3. SWICS stands for_________
4. Real /perceived and monetary/non monetary costs are termed as switching costs.(T/F)
5. TARP stands for _________
6. If the direct cost be „a‟, overhead cost be „b‟ and profit margin be „c‟ then the cost based pricing
can be calculated by:
a. a+b+c
b. a-b+c
c. a/b*c
d. none
7. If the percentage change in quality purchased be „a‟ and the percentage change in price be ‟b‟
then elasticity is given by:
a. a*b
b. a/b
c. a+b
d. a-b
8. If the actual revenue be „a‟ and the potential revenue be „b‟ then the yield can be given by:
a. a-b
b. a+b
c. a/b
d. b/a
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9. Reactors make adjustments unless forced to do so by environmental pressures.(T/F)
10. Least profitable customers are categorized in:
a. Platinum
b. Gold
c. Iron
d. Lead
Part Two:
1. What do you understand by “Customer Gap”?
2. Write the difference between perceptions of service quality and customer satisfaction.
3. Write short “SERVQUAL” survey.
4. What are different types of “Complainer”.
Section B: Caselets (40 marks)
This section consists of Caselets.
Answer all the questions.
Each caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 200 to 250 words).
Caselet 1
Giordano is a retailer of casual clothes in East Asia, South-East Asia, and the Middle East. In 1999, it
operated outlets in China, Dubai, Hong Kong, Macao, Philippines, Saudi Arabia, Singapore, South Korea,
and Taiwan. Giordano‟s sales grew from HK$712 million in 1989 to HK$3,092 million in 1999. This
case study describes the success factors that allowed Giordano to grow rapidly in some Asian countries. It
looks at three imminent issues that Giordano faced in maintaining its success in existing markets and in
its plan to enter new markets in Asia and beyond. The first concerns Giordano‟s positioning. In what
ways, if at all, should Giordano change its current positioning? The second concerns the critical factors
that have contributed to Giordano‟s success. Would these factors remain critical over the coming years?
Finally, as Giordano‟s seeks to enter new markets, the third issues, whether its competitive strengths can
be transferred to other markets, needs to be examined.
Being Entrepreneurial and Accepting Mistakes as Learning Opportunities
The willingness to try new ways of doing things and learning from past errors was an integral part of
Lai‟s management philosophy. The occasional failure represented a current limitation and indirectly
pointed management to the right decision in the future. To demonstrate his commitment to this
philosophy. Lai took the lead by being a role model for his employees “. . . Like in a meeting, I say, look,
I have made this mistake, I‟m sorry for that. I hope everybody learns from this. If I can make mistakes,
END OF SECTION A
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who the hell do you think you are that you can‟t make mistakes?” He also believed strongly in
empowerment – if everyone is allowed to contribute and participate, mistakes can be minimized.
Service
Giordano‟s commitment to excellent service was reflected in the list of service-related awards it had
received. It was ranked number one by the Far Eastern Economic Review, for being innovative in
responding to customers‟ needs, for three consecutive years – 1994, 1995, and 1996. And when it came to
winning service awards, Giordano‟s name kept cropping up. In Singapore, it won numerous service
awards over the years. It was given the Excellent Service Award for three consecutive years: 1996, 1997,
and 1998. It also received three tourism awards: “Store of the Year” in 1991, “Retailer of the Month” in
1993, and “Best Shopping Experience – Retailer Outlet” in 1996. These were just some of the awards
won by Giordano.
How did Giordano achieve such recognition for its commitment to customer service? It began with the
Customer Service Campaign in 1989. In that campaign, yellow badges bearing the words “Giordano
Means Service” were worn by every Giordano employee. This philosophy had three tents: We welcome
unlimited try-ons; we exchange – no questions asked; and we serve with a smile. The yellow badges
reminded employees that they were there to deliver excellent customer service.
Since its inception, several creative, customer-focused campaigns and promotions had been launched to
extend its service orientation. For instance, in Singapore, Giordano asked its customers what they thought
would be the fairest price to charge for a pair of jeans and charged each customer the price that they were
willing to pay. This one-month campaign was immensely successful, with some 3,000 pairs of jeans sold
every day during the promotion. In another service-related campaign, customers were given a free T-shirt
for criticizing Giordano‟s service. Over 10,000 T-shirts were given away. Far from only being another
brand-building campaign, Giordano responded seriously to the feedback collected. For example, the
Giordano logo was removed from some of its merchandise, as some customers liked the quality but not
the “value –for – money” image of the Giordano brand.
Against advice that it would be abused, Lai also introduced a no-questions-asked and no-timelimit
exchange policy, Which made it one of the few retailers in Asia outside Japan with such a generous
exchange policy. Giordano claimed that returns were less than 0.1 percent of sales.
To ensure that every store and individual employee provided excellent customer service, performance
evaluations were conducted frequently at the store level, as well as for individual employees. The service
standard of each store was evaluated twice every month, while individual employees were evaluated once
every two months. Internal competitions were designed to motivate employees and store teams to do their
best in serving customers. Every month, Giordano awarded the “Services Star” to individual employees,
based on nominations provided be shoppers. In addition, every Giordano star was evaluated every month
by mystery shoppers. Based on the combined results of these evaluations, the “Best Services Shop” award
was given to the top store.
Aggressive advertising and Promotion
Fung said, “Giordano spends a large proportion of its turnover on advertising and promotions. No retailer
of our size spends as much as us.” For the past five years, Giordano in Singapore had been spending
about S$1.5 million to S$2 million annually on its advertising and promotional activities. It won the Top
Advertiser Award from 1991 to 1994. Up to June 30, 2000, total advertising and promotional expenditure
for the group amounted to HK$41.5 million, or 3 percent of the group‟s retail turnover. In addition to its
big budget, Giordano‟s advertising and promotional campaigns were creative and appealing. One such
campaign was the “Round the Clock Madness Shopping” with the Singapore radio station FM93.3 on 1
May 1994. Different clothing items were offered at a 20 percent discount from 12 A.M. to 1 A.M.,
whereas polo shirts and T-shirts and T-shirts were given a 30 percent discount from 1 A.M. to 2 A.M. and
then shorts at a 40 percent discount from 2 A.M. to 3 A.M. To keep listeners awake and excited, the
product categories that were on sale at each time slot were released only at the specified hour, so that
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nobody knew the next items that would be on this special sale. Listeners to the radio station were cajoled
into coming to Giordano stores throughout the night (Ang 1996). In 1996, Giordano won the Singapore
Ear Award. Its English radio commercial was voted by listeners to be one of the best, with the most
creative English jingle.
Another success was its “Simply Khakis” promotion, launched in April 1999, which emphasized
basic, street-culture style that “mixed and matched” and thus fitted all occasions. In Singapore, within
days of its launch, the new line sold out and had to be relaunched two weeks later. By October 1999, over
a million pairs of khaki trousers and shorts had been sold. This success could be attributed partly to its
clearly defined communications objectives. As Garrett Bennett, Giordano‟s Executive Director in charge
of merchandising and operations, said, “We want to be the key provider of the basics: khakis, jeans, and
the white shirt.” Elsewhere in the region, sales were booming for Giordano, despite only moderate
recovery experienced in the retail industry. Its strength in executing innovative and effective promotional
strategies helped the retailer to reduce the impact of the Asian crisis on its sales and take advantage of the
slight recovery seen in early 1999. Aggressive advertising and promotions also played a significant role in
the successful remarketing of its core brand relaunch or introduction of sister brands, Giordano Ladies‟,
Giordano Junior, and Bluestar Exchange.
Giordano’s Growth Strategy
As early as the 1980s, Giordano realized that it was difficult to achieve substantial growth and economies
of scale if it operated only in Hong Kong. The key was in regional expansion. By 1999, Giordano had
opened 740 stores in 23 markets, out of which Giordano directly managed 317 stores. Until 2000, four
markets dominated its retail and distribution operations – Hong Kong, Taiwan, China, and Singapore. By
2000, Giordano had 895 Giordano stores in 25 markets.
Giordano cast its sights on markets beyond Asia, driven partially by its desire for growth and
partially to reduce its dependence on Asia in the wake of the 1998 economic meltdown. In Giordano‟s
first full year of operation in Australia, sales turnover reached HK$29 million (US$3.72 million) in
December 2000. The number of retail outlets increased from 4 in 1999 to 14 in 2000. With the opening up
of its first retail outlet in Sydney in September 2000, Giordano outlets could now be found in both
Melbourne and Sydney. As part of Giordano‟s globalization process, it planned to open up its first shops
in Germany and Japan during the first half of 2001. Currently, Giordano planned to focus its globalization
efforts on new markets like Germany, Japan, Australia, Indonesia, and Kuwait.
When the crisis made Giordano rethink its regional strategy, it was still determine to enter and
further penetrate new Asian markets. This determination led to the successful expansion of Giordano in
Mainland China, which saw the retail outlets grow from 253 stores in 1999 to 357 stores in 2000. Due to
the expanded retail network in Mainland China and improvements made to the product line, sales
turnover increased by 30.9 percent to HK$712 million (US$91.3 million) in 2000. Faced with the
imminent accession of Mainland China to the World Trade Organization, Giordano‟s management
foresees both challenges and opportunities ahead. In Indonesia, Giordano opened up 7 more stores in
2000, brining the total number of retail stores to 10. These stores covered areas in Jakarta, Surabaya, and
Bali. However, with the political and social instability in Indonesia, coupled with the downward pressure
on the Rupiah, Giordano was cautiously optimistic about further expansion and planned to proceed with
caution. In Malaysia, Giordano planned to refurnish its Malaysian outlets and intensify its local
promotional campaigns to consolidate its leadership position in the Malaysia market.
Giordano‟s success in these markets would depend on its understanding of them, and consumer tastes
and preferences for fabrics, colors, and advertising. In the past, Giordano relied on a consistent strategy
across different countries, and elements of this successful strategy included its positioning and service
strategies, information systems and logistics, and human resource policies. However, tactical
implementation (e.g., promotional campaigns) was left mostly to local managers in their respective
countries. A country‟s performance (e.g., sales, contribution, service levels, and customer feedback) was
monitored by regional headquarters (e.g., Singapore for South-East Asia) and the head office in Hong
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Kong. Weekly performance reports were made accessible to all managers. In recent years, it appeared that
as the organization expanded beyond Asia, different strategies had to be developed for different regions or
countries.
Questions:
1. How do you think Giordano had/would have to adapt its marketing and operations strategies and
tactics when entering and penetrating your country?
2. What general lessons can be learned from Giordano for other major clothing retailers in your
country?
Caselet 2
In 2003, Jyske Bank Group‟s primary operations consisted of Jyske Bank, which was the third largest
bank in Denmark after Den Danske Bank and Nordea‟s Danish operations. Jyske Bank was created in
1967 through the merger of four Danish banks having their operations in Jutland, Jyske being Danish for
“Jutlandish.” Jutland was the large portion of Denmark attached to the European mainland to the north of
Germany. Until the late 1990s, Jyske Bank was characterized as a typical Danish bank: prudent,
conservative, well-managed, generally unremarkable, and largely undifferentiated.
Beginning in the mid-1990s, Jyske Bank embarked on a change process that led to its no longer being
characterized as either unremarkable or undifferentiated. By 2003 its unique “flavor” of service made it a
leader in customer satisfaction among Danish banks. At the heart of these changes was the bank‟s
determination to be, in the words of one executive, “the most customer-oriented bank in Denmark.” The
bank achieved its goal by focusing on what it called Jyske Forskelle, or Jyske Differences.
JYSKE DIFFERENCES
Jyske Differences stemmed from Jyske Bank‟s core values. These stood as central tents, guiding virtually
all aspects of the organization‟s life. As one manager pointed out, the values were consistent with the
bank‟s Jyske heritage: “Really, when we started talking about our core values, and their Jyskeness, we
just became overt about values we had long held.” Jyske Bank‟s core values, published for employees,
customers, and shareholders, were that the bank shouls (1) have common sense; (2) be open and honest;
(3) be different and unpretentious; (4) have genuine interest and equal respect for people; and (5) be
efficient and persevering.
The core values led management to reevaluate how the bank did business with its customers.
Managers determined that if the bank were to be true to its values, it would have to deliver service
differently from both how it had in the past, and how other banks delivered service. Jyske Differences
were thus operationalized as specific practices that distinguished Jyske Bank.
Competitive Positioning
Managers looked to Jyske values and differences for the bank‟s competitive positioning. This process was
aided by a Dutch consultant, whose market research indicated that Jyske bank‟s core target market of
Danish families and small-to-medium sized Danish companies (earnings were 40 % commercial, 60%
retail) generally liked the idea of a bank that was jyske. Additional research suggested that what managers
described as the “hard factors” of price, product, and location had become sine qua non in the eyes of
customers. In contrast, “soft factors” relating to an individual customer‟s relationship with her service
providers served as the basic for differentiation, specially, “being nice,” “marketing time for the
customer,” and “caring about the customer and his family.”
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Managers felt that the “genuine interest” component of the bank‟s values dictated a shift from
traditional product focused selling to a customer-solution approach. They characterized the new approach
by contrasting the statement, “Let me tell you about our demand-deposit account,” with the question,
“What do you need?”
Although he bank‟s core financial products remained essentially similar to those of other Danish
banks,3 the way they were delivered changed. This required significant changes in the branches, both
tangible and intangible, and how they were supported. Tools were developed to support solution-based
service delivery. For example, new IT systems helped employees take customers through processes to
determine their needs and final appropriate solutions. In one, the customer and her banker filled out an
on-line investor profile to determine what style of investment products were most appropriate for her
based on risk aversion, time frame, and return goals, among other factors. A manager commented that,
“The tools themselves aren‟t proprietary. We‟ve seen other financial services with similar programs – it‟s
how our people use them that makes the difference.” Another stated, “Our tools are designed either to
enhance our ability to deliver solutions, or to reduce administrative tasks and increase the amount of time
our people can spend with customers – delivering solutions.”
Finally, being overtly Jyske meant that the bank would no longer be a good place for any customer
meeting its demographic criteria for two reasons. First, delivering this type of service was expensive. As a
result, the bank charged a slight premium, and targeted only those customers who were less likely to
represent a credit risk. Second, the bank would have a personality. According to one manager, “The
danger in having a personality is, someone, inevitably, won‟t like you.” Senior management considered
this the price of being candid, and welcomed the effect it had on some customers. For example, Jyske
Bank‟s cash/debit card had a picture of a black grouse on it, black grouses being found in Jutland‟s rural
countryside. When a few customers complained that the bird didn‟t seem very business-like, or wasn‟t hip
(one was “embarrassed to pull it out at the disco”) managers were happy to invite them to open accounts
at competitor institution. A manager noted:
Actually, if no one reacts to our materials, they‟re not strong enough. Some people should
dislike us. After all, we‟re only about 6% of the market. I don‟t want everyone to like us –
we‟re not for everyone and don‟t want to be.
Tangible Differences
Account Teams
Delivering on the banks competitive positioning required a number of tangible changes in its service
delivery system. These began with assigning each customer a branch employee to serve as primary point
of contact. Over time, managers discovered that this created problems, because customers often arrived at
a branch when their service provider was busy with other customers or otherwise unavailable.
Nevertheless, managers were committed to providing individualized service. According to one, “How can
we be honest in saying we care about customers as individuals if we don‟t get to know them as
individuals? And without knowing them, we can‟t identify and solve their problems.” The solution was
found in account teams: each customer was assigned to a small team of branch bankers. These employees
worked together to know and serve their customers, sitting in close physical proximity within the branch.
Branch Design
Jyske Bank planned to spend approximately DKK 750 million to physically redesign its branches (most
of this had been spent by 2003). Danish observers described the new branches as looking “like an
advertising agency” or “a smart hotel.” These effects were accomplished through the use of modern, upscale
materials such as light wood, warm colors, and original art. Branch redesign also included changes
in the way customers interacted with their bankers, made possible by architectural and design changes.
For example, customers waiting for their banker could help themselves to fresh coffee in a small part of
the branch resembling a café. A customer commented on the café, “It means more than you initially think
Examination Paper of Customer Relationship management
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IIBM Institute of Business Management
– it makes you feel welcome, it says they‟re really interested in me.” Fruit juice was available for
children, who could amuse themselves with toys in the play center. Bankers‟ desks were now round
tables, signifying equally. A team of three or four bankers sat at a single large round table, with customers
making themselves comfortable between the bankers‟ work stations. Customers could see bankers‟
computer screens, reinforcing openness. Customers‟ ability to view the screens also facilitated the use of
IT programs designed to structure interactions between account team members and customers. As equals,
bankers and customers sat in the same type of chairs, and bankers no longer sat on a raised dais, the
origins of which went back to feudal times when the heads of certain people were supposed to be higher
than those of others. If a conversation required more discretion, specially designed meeting rooms giving
the feeling of “home” were available.
Intangible Differences
Delivering the bank‟s new competitive positioning also required numerous intangible changes and other
changes not immediately visible to the customer. Managers stated that the most important of these
involved training and empowering those employees closest to the customer to serve the customer.
Training
Before a branch was remodeled, all staff took part in special training sessions. These included
teambuilding and customer service, drawing on best practices from the “traditional” retail sector.
Management Style
A senior manager commented:
You can train and educate all day long, but unless your managers and employees are committed to Jyske
Differences, they just won‟t happen. Getting them required a great deal of my effort.
When we started this process there were times when it was hard – really hard. The branch managers
didn‟t think strategically – they sat in their offices and focused on their day-to-day work. I wanted the
branch manager to get up on a hill and look around, to get a bigger picture. To get them to change I asked
them questions: What‟s the market? Where – and who – are your competitors? What are your strengths
and weaknesses, how do they tie to Jyske Differences? Now, contrast what you need with what you have.
Are the teams in your branch living up to the demands? What do you need to do to ensure that they will?
There will be resistance; understand where it is coming from. One way to deal with it is to make
agreements with individuals on how they will develop new skills. If there is a complete mismatch you
may need new team members, but for the most part, you can coach your people through this kind of
change – you can lead them.
According to another executive:
The branch managers have to be able to motivate employees to work a little harder, and differently. The
most successful give their employees a lot of latitude for decision making. They do a lot of training, 80%
of which is on the job. When it isn‟t, it‟s mostly role playing. There aren‟t any high-powered incentives to
offer, but there are really good tools coming out of IT. it‟s more how the branch managers do it than what
employees to share the values and act on them.
A third noted:
When I have a difficult situation I look for what I call a “culture carrier.” I try put that person into the
middle of it, because they live our values. What I usually see is that the other employees who are on the
Examination Paper of Customer Relationship management
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IIBM Institute of Business Management
fence about the values start to come over – they see the example and they like what they see. This leaves
the few people who really don‟t want to be Jyske on the outside, and they tend not to last long. Most
people are willing to change, but they‟ve got to be supported in the process.
CONCLUSION
The bank‟s leadership believed that Jyske values and differences, and the bank‟s value chain, provided
ways to achieve the balance they wanted among their three stakeholders: employees, customers, and
shareholders. Several leaders commented that with the large capital investments behind them as of 2003,
net income would increase considerably in the coming years, assuming the recession of 2001 and 2002
was over. Shareholders had received a 17.8% annual return on their investment for the ten years prior to
year-end 2002. Anders Dam‟s 2002-2003 goal for shareholders was to increase the bank‟s stock multiple
approximately 40% to the level of Danske Bank‟s, the largest and most richly-priced bank in Denmark.
This was achieved in July 2003.6 While the bank‟s leadership was pleased with the bank‟s success, they
were more interested in determining how the bank would remain in a position of leadership while still
keeping the interests of its key stakeholders in balance.
Questions:
1. What did Jyske Bank change to enable it to deliver its new competitive positioning?
2. How did Jyske Bank implement those changes?
Section C: Applied Theory (30 marks)
This section consists of Long Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. Choose a firm you are familiar with. Describe how you would design an ideal service recovery
strategy for that organization.
2. Discuss the customer‟s role as a productive resource for the firm. Describe a time when you
played this role. What did you do and how feel? Did the firm help you perform your role
effectively? How?
S-2-300813
END OF SECTION B
END OF SECTION C
Examination Paper of Supply Chain Management
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IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Supply Chain Management
Section A: Objective Type & Short Questions (30 Marks)
This section consists of Multiple Choi ce & Short Notes type questions.
Answer all the questions.
Part One carries 1 mark each & Part Two carries 2 marks each.
Part One:
Multiple Choices:
1. When demand is steady, the cycle inventory for a given lot size (Q) is given by_____
a. Q/4
b. Q/8
c. Q/6
d. Q/2
2. There are two firms „x‟ and „y‟ located on a line of distance demand(0-1) at „a‟ and „b‟
respectively, the customers are uniformly located on the line, on keeping the fact of splitting of
market, the demand of firm „x‟ will be given by,
a. (a+b)/2
b. a+(1-b-a)/2
c. (1+b-a)/2
d. a+(a-b)/2
3. Push process in supply chain analysis is also called_______
a. Speculative process
b. Manufacturing process
c. Supplying process
d. Demand process
4. If the Throughput be „d‟ and the flow time be „t‟ then the Inventory „I‟ is given by______
a. I *d=t
b. I=t+d
c. d=I*t
d. I =d*t
5. Forecasting method is_______
a. Time series
b. causal
c. Qualitative
d. All the above
6. Component of order cost include:
a. Handling cost
Examination Paper of Supply Chain Management
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IIBM Institute of Business Management
b. Occupancy cost
c. Receiving costs
d. Miscellaneous costs
7. How many distinct types of MRO inventory are there:
a. One
b. Four
c. Three
d. Two
8. Supply chain driver is________
a. Inventory
b. Return ability
c. Fulfillment
d. All of above
9. SRM stands for________
a. Strategic Relationship Management
b. Supply Return ability Management
c. Supplier Relationship Management
d. None of the above
10. Discount factor equals to, where k is the rate of return.
a. 1/1+k
b. 2/1+k
c. 1/1-k
d. 1/2+k
Part Two:
1. Explain “zone of strategic fit”.
2. Explain “scope of strategic fit”.
3. What do you understand by “stimulation forecasting method”?
4. Write a note on “obsolescence (or spoilage) cost”.
5. Define “square law” in safety inventory of supply chain management.
6. What does the word “postponement” signifies in supply chain?
7. What do you understand by the term “tailored sourcing”?
8. Explain the term “outsourcing”.
9. Write a note on “threshold contracts” for increasing agent efforts.
10. What is “dynamic pricing”?
END OF SECTION A
Examination Paper of Supply Chain Management
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IIBM Institute of Business Management
Section B: Caselets (40 marks)
This section consists of Caselets.
Answer all the questions.
Each caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 200 to 250 words).
Caselet 1
Orion is a global co. That sells copiers. Orion currently sells 10 variants of a copier, with all inventory
kept in finished-goods form. The primary component that differentiates the copiers is the printing
subassembly. An idea being discussed is to introduce commonality in the printing subassembly so
that final assembly can be postponed and inventories kept in component form. Currently, each copier
costs $1,000 in terms of components. Introducing commonality in the print subassembly will increase
component cost to$1.025.One of the 10 variants represents 80 percent of the total demand. Weekly
demand for this variant is normally distributed ,with a mean of 1,000 and a standard deviation of
200.Each of the remaining nine variants has a weekly demand of 28 with a standard deviation of
20.Orion aims to provide a 95per level of services .Replacement lead time for components is four
weeks. Copier assembly can be implemented in a matter of hours. Orion manages all inventories
using a continuous review policy and uses a holding cost of 20 percent.
1. How much safety inventory of each variant must Orion keep without component commonality?
What are the annual holding costs?
2. How much safety inventory must be kept in component form if Orion uses common components
for all variants? What is the annual holding cost? What is the increase in component cost using
commonality? Is commonality justified across all variants?
3. At what cost of commonality will complete commonality be justified?
4. At what cost of commonality will commonality across the low-volume variants be justified?
Caselet 2
An electronic manufacturer has outsourced production of its latest MP3 player to a contract
manufacturer in Asia. Demand for the players has exceeded all expectations whereas the contract
manufacturers sell three types of players- a 40-GB player, a 20-GB player, 6-GB player. For the
upcoming holiday season, the demand forecast for the 40-GB player is normally distributed, with a
mean of 20,000and a standard deviation Dard deviation of 11,000, and the demand forecast for the 6-
sGB player has a mean of 80,000 and a standard deviation of 16,000. The 40-GB player has a sale
price of $200, a production cost of $100, and a salvage value of $80 .The 20-GB player has a price of
$150, a production cost of $70, and a salvage value of $50.
1. How many units of each type of player should the electronics manufacturer order if there are no
capacity constraints?
2. How many times of each type of player should the electronics manufacturer order if the available
is 140,000? What is the expected profit?
END OF SECTION B
Examination Paper of Supply Chain Management
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IIBM Institute of Business Management
Section C: Applied Theory (30 marks)
This section consists of Long Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. Consider two products with the same margin carried by a retail store. Any leftover units of one
product are worthless. Leftover units of the other product can be sold to outlet stores. Which
product should have a higher level of availability? Why?
2. McMaster-Carr sells maintenance, repair, and operations equipment from five warehouses in the
United States. W.W. Grainger sells products from more than 350 retail locations, supported by
several warehouses. In both cases, customers place orders using the Web or on the phone. Discuss
the pros and cons of the two strategies.
END OF SECTION C
Examination Paper of Supply Chain Management
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IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Statistical Quality Control
Section A: Objective Type & Short Questions (30 Marks)
This section consists of Multiple c hoice & Short Note type questions.
Answer all the questions.
Part One carries 1 mark each & Part Two carries 4 marks each.
Part One:
Multiple choices:
1. If in a hall there are 18 persons then how many handshakes are possible.
a. 18*18
b. 18*17/2
c. 18*17
d. None
2. If the number of trials be „n‟ and the probability of occurrence be „p‟ then the standard
deviation with respect to np, is given by?
a. (np)
1/2
b. (np(1-p))
1/2
c. (np)
1/4
d. (np(1-p))
1/4
3. For a biased coin the probability of occurrence of head is 0.4 ,if the coin is tossed twice then
the probability of occurrence of at least one head will be:
a. 0.76
b. 0.48
c. 0.64
d. 0.16
4. Factorial of 5 equals__________
a. 60
b. 120
c. 24
d. 5
5. Combinatory of (4,2) equals_______
a. 12
b. 8
c. 6
d. None
6. “Economic Control of Quality of Manufactured Product‟, a book by Walter A Shewhart in
a. 1931
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IIBM Institute of Business Management
b. 1941
c. 1930
d. 1956
7. Quality is judged by___________
a. Retailer
b. Government
c. Customer
d. Hole seller
8. A run chart is a special chart of______
a. Pie chart
b. Line chart
c. R chart
d. C chart
9. Universes may differ_____
a. In average
b. In above average
c. At higher level
d. All of the above
10. ASQC and ANSI began in
a. 1956
b. 1976
c. 1978
d. 1960
Part Two:
1. Differentiate between „defect‟ and „defective‟.
2. Explain the need of „short method‟.
3. What does „Tchebycheff‟s inequality theorem‟ say?
4. Explain the usability of „stochastic limit‟.
5. Write a note on „Cause and Effect‟ diagram.
END OF SECTION A
Section B: Caselets (40 marks)
This section consists of Caselets.
Answer all the questions.
Each caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 200 to 250 words).
Examination Paper of Supply Chain Management
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IIBM Institute of Business Management
Caselet 1
ADAPTABILITY IN ACTION: A CASE OF RSL
Rajasthan Synthetics Ltd. (RSL) was established in the year 1994 at Bhilwara, Rajasthan to
manufacture synthetic yarn with a licensed capacity of 29,000 spindles. Manish Kumar, a Harvard
Business School graduate, established RSL with 8% equity participation from Itochu Corporation
Japan to manufacture synthetic yarn for shirting, a promising business at that time. The demise of the
NTC textile mills was fresh in the minds of the promoters and therefore, state of the art technology
imported from U.K., Germany, Japan and France was used in the manufacturing facility. By the time
the company started manufacturing yarn the competition in shirting yarn had become fierce and the
returns had diminished. The company incurred losses in the first four years of its operations and the
management was looking for opportunities to turn things around. The manufacturing plant started
functioning with an installed capacity of 26,000 spindles, a small unit considering yarnmanufacturing
industry, in the year 1996 to manufacture synthetic yarn for shirting only. Initially, the
major fabric manufactures of India such as Raymonds, Donear, Grasim, Amartex, Siyaram, Pantaloon
and Arviva were the main customers of the company and the total produce of the company was sold
within the domestic market. These fabric manufactures used to import the premium quality yarn
before RSL started supplying the yarn to them. The company in the first year of its operations
realized that shirting yarn was one of the fiercely competitive products and the company with its high
interest liability was unlikely to earn the desired profits. Also, the company had a narrow product mix
limited to only two more blow room lines were installed in the first quarter of 1997. The addition of
two blow room lines helped RSL to manufacture four different types of yarns at the same time.
Utilizing this added flexibility, RSL began manufacturing yarn for suitings.Since the suiting yarn was
providing better returns, the company was keen to increase manufacturing of suiting yarn but was
hampered by the two for one doubling (TFO) facility, which was limited to only 40% of the total
produce. To remove this bottleneck, 12 more TFO machines were added to the existing 8 TFO
machines. The addition of these machines increased the doubling capacity to 70% of the production
providing additional product mix flexibility to the company. This enabled the company to
manufacture yarn to cater to the requirements of suiting, industrial fabric and carpet manufacturers. In
the initial years of its operations, RSL realized that the promises made by the Government of
Rajasthan to provide uninterrupted power supply of the required quality (stable voltage and
frequency) and ample quantity of water were unlikely to be met through the public distribution
system. The voltage and frequency of electric power provided through the public distribution system
were erratic and frequent announced and unannounced power cuts stopped production on a regular
basis. In these circumstances, meeting quality requirements of the customers and adhering to delivery
schedules was a herculean task. To ensure smooth and uninterrupted operations RSL installed inhouse
power generation facility of 4 megawatts capacity and dug 10 tube-wells.RSL faced stiff
competition in the domestic market from Gujarat Spinning and Weaving Mills, Surat, Rajasthan
Textile Mills, Bhawani Mandi, Charan Spinning Mills, Salem and Indorama Synthetics Ltd.,
Pithampur in all their product categories and the returns were low. In order to combat stiff
competition in the domestic market and improve returns the company started developing export
markets for their products in the year 1998. Initially, RSL started exporting carpet yarn to Belgium
and till 2001; carpet yarn formed the major component of their exports. A trade agreement was signed
with Fibratex Corporation, Switzerland to share profits equally for expanding their overseas
operations. During the same period, RSL continued to scout for new export markets and was
successful in entering top-of-the-line fancy for premium fashion fabric manufactures of international
repute like Mango and Zara. Rajasthan Synthetics Ltd. also exported fancy yarn to a number of fabric
manufacturers located in Italy, France, England, Spain and Portugal. Yarn manufacturers from
Indonesia, Korea and Taiwan gave stiff competition to RSL when it entered the international market.
The companies from South Asian countries had a major cost advantage over RSL because of cheap,
uninterrupted availability of power and high labour productivity. Currencies had been sharply
devalued during the South Asian financial crisis, which rendered the products manufactured by these
Examination Paper of Supply Chain Management
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IIBM Institute of Business Management
companies still cheaper in international markets. Despite all these disadvantages, RSL was able to
gain a foothold through constant adaption of their products according to the customer requirements in
the highly quality conscious international yarn market and was exporting 95% of its total produce by
the beginning of the year 2002.
Rajasthan Synthetics Ltd. had fine-tuned its distribution channels according to the type of markets
and size of orders from the customers. In line with this policy the export to Middle East, Far East and
Turkey was carried out through agents. Similarly, low volume export of fancy yarn requirements was
also catered through agents. While dealing with importers directly, RSL strictly followed the policy
of exports against confirmed Letter of Credits only. The company directly exported to important
clients in Belgium, England and France. The domestic market was also served through an agency
system. Rajasthan Synthetics Ltd. considered inventories as an unnecessary waste and kept minimum
possible inventories while ensuring required level of service. To ensure that the inventories were held
to a minimum, the manufacturing plan consisted of 60 to 70% against customer orders, 30 to 40%
against anticipated sales and 2% capacity was reserved for new product development. A Strategic
Management Committee (SMC) consisting of MD, CEO, GM (marketing) and GM (technical)
reviewed the production plan of the manufacturing plant on quarterly basis. The SMC also developed
the plans for profitability, product mix and cost minimization. Delivering high-quality products and
meeting delivery commitments for every shipment were essential pre-requisites to be successful in the
global market place. The company had understood this very early and to ensure that the products
manufactured by RSL met the stringent quality requirements of its international customers, the
company had developed a full-fledged testing laboratory equipped with ultra modern testing
machines like User Tester-3 and Classifault. The company had stringent quality testing checks at
every stage of tarn production right from mixing of fiber to packing of finished cones. Its in-house
Research and Development and Statistical Quality Control (SQC) divisions ensured consistent
technical specifications with the help of sophisticated state-of-the-art machines. A team of
professionally qualified and experienced personnel to ensure that the yarn manufactured by the
company was in line with international standards backed the company. The company continuously
upgraded its product mix and at the same time, new products developed by in-house research and
development department were added to the product mix form time to time. RSL‟s management was
quick to analyze the potential of these in-house developments and followed a flexible approach in
determining the level of value addition. The company had developed a new yarn recently and was
selling it under the Rajtang brand name. This new yarn was stretchable in three dimensions, absorbed
moisture quickly, was soft and silky and fitted the body. This yarn was extracted from natural
products and being body-friendly, was in great demand in international markets. Looking at the
higher value addition possibilities RSL decided to forward integrate and started manufacturing fabric,
using Rajtang and provided ready-made garments like swimming suit, tracksuit, undergarments, tops,
slacks and kids dresses. The ready-made dresses from the fabric were being manufactured on the
specifications and designs of RSL. The management decided to market these products under the
brand name “Wear-it” through Wearwell Garments Pvt. Ltd., an associate company of RSL, to ensure
that RSL did not lose its focus. The Managing Director of RSL felt that continuous adaptability to
market requirements through a flexible approach, cost cutting in every sphere of operations and team
approach to management had taken them ahead. However, RSL had become highly dependent on the
volatile export market and if it was not able to retain the international market it would have to reestablish
itself in the domestic market, which was not an easy task.
1. What marketing strategy should RSL adopt to remain competitive in the international market?
2. Has the company taken the right decision to forward integrate and enter into the highly volatile
garment market?
Caselet 2
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IIBM Institute of Business Management
Popular mythology in the United States likes to refer to pre-World War II Japan as a somewhat
backward industrial power that produced and exported mostly trinkets and small items of dubious
quality bought by Americans impoverished by the Great Depression. Few bring up the fact that, prior
to the Pearl Harbor attack, Japan had conquered what are now Korea, Manchuria, Taiwan, and a large
portion of China, Vietnam, and Thailand; and by the end of 1942 Japan had extended its empire to
include Burma, the Philippines, Indonesia, Malaysia, Thailand, Cambodia, New Guinea, plus many
strings of islands in the eastern Pacific Ocean. Its navy had moved a large armada of worships 4,000
miles across the Pacific Ocean, in secret and in silence, to attack Pearl Harbor and then returned
safely home. Manufacturers capable of producing only low-grade goods don‟t accomplish such feats.
High-quality standards for military hardware, however, did not extend to civilian and export goods,
which received very low priority during the war years. Thus the perception in the United States for a
long time before and then immediately after the war had nothing to do with some inherent character
flaw in Japanese culture or industrial capability. It had everything to do with Japan‟s national
priorities and the availability of funds and material. Following Japan‟s surrender in 1945, General
MacArthur was given the task of rebuilding the Japanese economy on a peaceful footing. As part of
that effort an assessment of damage was to be conducted and a national census was planned for 1950.
Deming was asked in 1947 to go to Japan and assist in that effort. As a result of his association with
Shewhart and quality training, he was contacted by representatives from the Union of Japanese
Scientists and Engineers (JUSE), and in 1950, Deming delivered his now famous series of lectures on
quality control. His message to top industry leaders, whom he demanded to attend, and to JUSE was
that Japan had to change its image in the United States and throughout the world. He declared that it
could not succeed as an exporter of poor quality and argued that the tools of statistical quality control
could help solve many quality problems. Having seen their country devastated by the war, industry
and government leaders were eager to learn the new methods and to speed economic recovery.
Experience was to prove to Deming and others that, without the understanding, respect, and support
of management, no group of tools alone could sustain a long-term quality improvement effort.
1. How could have the SQC approach, been useful in solving the immediate problems of Japan?
2. If you were among one of the management members, what would have been your first insight?
END OF SECTION B
Section C: Practical Problems (30 marks)
This section consists of Long Questions.
Answer all the questions.
Each question carries 15 marks.
1. A sample of 30 is to be selected from a lot of 200 articles. How many different samples are
possible?
2. In Dodge‟s CSP-1, it is desired to apply sampling inspection to 1 piece out of every 15 and to
maintain an AOQL of 2%. What should be the value of i?
S-2-300813
END OF SECTION C
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Examination Paper MM. 100
Digital Marketing Professional
Guidelines for paper
Total No. of Question is 100.
The minimum passing mark is 40%.
Each Question carries 1 mark.
Answer all the Questions.
Multiple Choices:
1. The First Form of Mass-Media advertising was born in_______
a) 17th Century
b) 18th Century
c) 20th Century
d) 19th Century
2. Which one is the new and latest force of the advertising?
a) Radio
b) Internet
c) Newspaper
d) Television
3. Printing press, radio, television and internet are all examples of:
a) Major breakthroughs in technology
b) Digital Marketing
c) Global communication
d) None of these
4. ARPA Stand for_____________
a) Advanced report project agency
b) Advanced research project agency
c) Advanced report packet agency
d) None of these
5. The conversion of an analogue signal to a digital format is called__________
a) Decoding
b) Embedded Format
c) Emoticons
d) Encoding
6. What is the full form of W3C?
a) World Wild Web computer
b) World Wide Web consortium
c) World West Web computer
d) World Wide Web communicated
7. Advertising that is targeted to the content on the web page being viewed by a user at that specific time
is called______
a) Contextual Advertising
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 2
b) Content Advertising
c) Conversion Advertising
d) Commission Advertising
8. Which of the following is not come under Four Ps of product?
a) Place
b) People
c) Price
d) Promotion
9. Search engine optimization (SEO) is related to_________
a) Promotion
b) Process
c) Product
d) None of these
10. “Small opportunities are after the beginning of great enterprise” is written by_________
a) Kathy Ireland
b) Jeff Bezos
c) Demosthenes
d) All of the above
11. Making sure everything works the way, it should before you let it out is known as___________
a) Designing
b) Testing
c) Planning
d) Developing
12. Every website on the Internet has a unique address is called_________
a) Domain Name
b) Numeric address
c) IP address
d) All of the above
13. Which of the following is most common and cheapest form of hosting?
a) Virtual dedicated hosting
b) Shared hosting
c) Dedicated hosting
d) Cloud-based hosting
14. Write down the full name of SERP_______
15. In the header section of the code on each of your web pages known as_______
a) Link
b) Body
c) Tag
d) Title
16. Which type of links are reside on pages that do not belong to your domain?
a) External
b) Internal
c) Internal/External
d) None of these
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 3
17. IAB Stand for_________
18. A page with no meaningful content that is full of ads and the webmaster makes money from if someone
Clicks on them is called_________
a) Cloaking
b) Doorway page
c) Spam page
d) Interlinking
19. What is the second method of page Tagging?
a) Process
b) Developing
c) Designing
d) None of these
20. Every Transaction your web server makes is recorded in:
a) User file
b) Log file
c) Page tags
d) All of these
21. What is the full form of KPI________
a) Key process indicator
b) Key present indicator
c) Key performance indicator
d) Key Prospective identity
22. Which version produces the best result when two different version running of an ads or a page and
measuring the result to identity?
a) Testing
b) Tweaking
c) Investing
d) A/B split testing
23. Putting the theory into practice means:
a) Taking intelligence gleaned
b) Taking advertising creative
c) Taking Decisive action
d) Taking measurable action
24. “The new information technology internet and e-mail have practically eliminated the physical costs of
communication” said by________
a) Sims Jenkins
b) Signal vs noise
c) Matt Lindermann
d) Peter Drucker
25. Which marketing is the most powerful element in your digital marketing toolbox?
a) Digital Marketing
b) Direct Marketing
c) E-mail Marketing
d) Personal Marketing
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26. Fusion of marketing savvy and imagination copy is related to_________
a) Promotional Marketing
b) E-mail Marketing
c) Digital Marketing
d) None of these
27. Write down the full name of CAN-SPAM act________
28. Software and service that allow users to come together online and exchange, discuss, communication in
any form of social interaction is:
a) Social Paradigm
b) User Interface
c) E-mail
d) Social Media
29. The main problem with A/B split Testing is that ___________
a) You can use it to test variances of a single page element at a time
b) Double page element at a time
c) More than 2 page element at a time
d) All of the above
30. Personal interaction, creating, exchanging and sharing they all are different form of__________
a) Social Book marketing
b) Social media
c) Social paradigm
d) None of these
31. Which of the following is social media submission site?
a) www.digg.com
b) www.reddit.com
c) www.stumbleupon.com
d) All of the above
32. A series of digital media files (Audio or video) distributed over the internet is known as________
a) Blogs
b) Podcasts
c) Micro Blogging
d) Wikis
33. What is the essentially a short-message broadcast service that lets people keep people up to data via
short, public text posts upto 140 characters?
a) Facebook
b) SMS
c) Twitter
d) Linkedln
34. Online collection of web pages that are literally open for anyone to create, edit, discuss, comment on
and generally contribute to is:
a) Micro Blogging
b) Social media dash board
c) Wikis
d) None of these
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35. In which year the Chartered Institute of Public relation is define online PR (Public Relation) relations?
a) 2009
b) 2008
c) 2007
d) 2006
36. The process whereby a brand site, attracts customers by recording a third party for promoting their
Products and driving converting traffic website is called_________
a) Digital Marketing
b) Affiliate Marketing
c) E-mail Marketing
d) Strategic partnership
37. _______ the amount paid by an advertising for a click on their sponsored search listing.
a) Cost per action
b) Cost per acquisition
c) Cost per click
d) Cost per mille
38. The consumer performs the desired action on the merchant’s site, and a small piece of embedded code
on the merchant’s site inform the___________
a) Affiliate Marketing
b) Affiliate Network
c) Affiliate Site
d) None of these
39. Online Advertising content that appears over the top of the web page is called_________
a) Organic search results
b) Overlay
c) Opt-out
d) Opt-in
40. A computer file format that compresses audio files up to a factor of 12 from a wav file is known
as_________
a) MP3
b) MISSAN
c) MPEG
d) MPU
41. ___________ is a set of practices that enable organizations to communicate and engage with their
audience in an interactive and relevant manner through any mobile device or network.
a) Mobile Marketing
b) E-mail Marketing
c) Digital Marketing
d) All of the above
42. Which Advertising is now recognized as an opportunity for brands, advertisers and publishers to
engage consumers in a targeted and contextual manner?
a) Radio advertising
b) News paper advertising
c) Mobile advertising
d) Television advertising
Examination Paper of Digital Marketing Professional
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43. Which of the following language is used by many Internet application for exchanging information:
a) HTML
b) XHTML
c) XML
d) JAVA
44. Which is the example of popular Key performance Indicator (KPIs) for mobile campaigns?
a) Total downloads
b) Total Application user
c) Frequency and duration visit
d) All of these
45. Write down the full form of GPS__________
46. Which one of the company was launched its first play station back in 1995?
a) Apple
b) Nokia
c) Sony
d) Blackberry
47. In which year the first advertising agency, set up in Boston?
a) In 1855
b) In 1847
c) In 1843
d) In 1850
48. In 1983 which one started using TCP/IP protocol?
a) W3C
b) DNS
c) DARPA
d) ARPA NET
49. The first web page on the Internet was built at________
a) TCP
b) CERN
c) ARPA
d) All of the above
50. Who are becoming better informed, better connected, more communicative in the market?
a) Buyers
b) Customer
c) Consumers
d) None of these
51. Which Technology become more ubiquitous in people lives that consumers can satisfy their need more
quickly, more easily and with fewer barriers?
a) Advance Technology
b) Digital Technology
c) Both (a) & (b)
d) None of these
52. ___________ Technology that allows the use of a broadband internet connection to make telephone
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calls.
a) Video on demand
b) Virtual mobile network operator
c) Wireless application protocol
d) Voice over internet protocol
53. Who is the most important element in any form of marketing?
a) People
b) Customer
c) Seller
d) Consumer
54. Press releases, articles syndication and blogs they all are related to which channels?
a) Personal Channels
b) Offline Channels
c) Online Channels
d) None of these
55. Everything you do, online and offline, to get your product in front of your prospects is called_______
a) Promotion
b) Influencing
c) Advertising
d) All of the above
56. What is the first step of building your websites?
a) Testing
b) Design
c) Planning
d) Development
57. The process of designing your website to be equally accessible to everyone, in relation to the web is:
a) Usability
b) Accessibility
c) W3C & web standards
d) None of the above
58. You can buy multiple domain names is true or false.
a) True
b) False
59. Which of the following have ability to connect to the internet wirelessly?
a) Wi-Fi
b) Wiki
c) Web 2.0
d) Wilfing
60. The difference between effective web writing and effective print writing reflect the nature of:
a) People
b) Web designers
c) Both (a) & (b)
d) Audience
61. “Learning is the beginning of wealth, health and spirituality” this is said by________
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a) William Randolph Hearst
b) Marissa Mayer
c) Jim Rohn
d) None of these
62. Process a huge volume of searchers, scanning billions of items and delivering pages of relevant, ranked
results in a fraction is:
a) Engines
b) Browser
c) Search Engines
d) Scouring the web
63. Which of the following is not a traditional marketing channels ________
a) Commercial television
b) Radio
c) Print Publication
d) Yahoo
64. Short-tail Keyword is simple and very general in nature is:
a) True
b) False
65. Which type of tail keyword have more complex and more specific in nature?
a) Short- tail
b) Long-tail
c) Medium- tail
d) All of these
66. If you take it literally, encompasses everything on your website is called_______
a) Search results
b) Context
c) Content
d) Spiders
67. _________ is a technique that uses code to show one search engine friendly page to the spiders, and a
completely different page to a human visitor.
a) Cloaking
b) Interlinking
c) Keyword stuffing
d) Invisible Text
68. Your log files capture visits by search engines spiders and other automated bots as well as________
a) Analytics Software
b) Machines
c) Human user
d) All of these
69. ___________ will work even if you can’t access your web server logs?
a) Logs files
b) Page Tagging
c) Both (a) & (b)
d) None of these
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70. Junk paper mail become_______
a) Junk virtual mail
b) Junk business mail
c) Junk mail
d) Virtual mail
71. A host computer which maintains websites, newsgroup and e-mail service is known as_________
a) Session
b) Server
c) Simulcast
d) Skyscraper
72. When a legitimate E-mail is blocked by a spam filter is known as:
a) False Positive
b) True Positive
c) Tricky Proposition
d) None of these
73. Which one of the following is one of the most important steps in writing E-mail?
a) Creating Copy
b) Great subject line
c) Crafting the e-mail subject line
d) Ambiguous e-mail
74. To grab the attention to the audience in your e-mail which one of the option is best?
a) Point to point
b) Briefly
c) Interesting
d) All of the above
75. E-mail are delivered to the people on your list is another crucial element in your_________
a) E-mail marketing
b) Digital Marketing
c) Direct Marketing
d) Both (a) & (b)
76. __________ is that you deliver your message directly to an individual who actually wants to hear from
you.
a) Direct Marketing
b) E-mail Marketing
c) Digital Marketing
d) None of these
77. __________ is umbrella term for web based software and service.
a) Social Media
b) Social Media Submission
c) Social Bookmarking
d) None of these
78. People who are most active in social media circles will be the element of your target market can be
classified as________
a) Influencers
b) Influence
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c) Listener
d) All of these
79. Social bookmarking site is known as_______
a) www.delicious.com
b) www.ma.gnolia.com
c) Both (a) & (b)
d) None of these
80. What is the main work of review and rating sites?
a) Allow user to review and rate companies
b) Allow user to show the status of the companies
c) Allow user to give suggestion
d) Allow user to view the status
81. Facebook, Linkedlns, Google these all are comes under_______
a) Social Network Sites
b) Social Media Sites
c) Media sharing Sites
d) Forums and Discussion Sites
82. People all over the world are using blogs to______
a) Report Local News
b) Offer their opinion
c) Share their experience
d) All of these
83. Which of the following content is available to both media professionals and consumers?
a) PR
b) CRM
c) Both (a) & (b)
d) None of these
84. What is the right way of getting prominent, newsworthy stories about your product, brand or company?
a) Online Press release
b) Offline press release
c) Offline Equivalent
d) Standard Press release
85. Your headline and first paragraph should capture reader’s_________
a) Attention
b) Interest
c) Views
d) Suggestion
86. Who are working in affiliate Marketing?
a) Brand/Seller
b) Affiliate
c) Customer
d) all of these
87. The companies who want their product and services advertising on the interest and are trying to attract
new business called_______
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a) The Affiliate
b) The Merchants
c) The Consumers
d) The Customers
88. __________ is refers to that free brand exposure free as merchant only pay for action.
a) Affiliate marketing
b) Digital Marketing
c) Strategic Marketing
d) None of these
89. Innovation and human desire for something newer and better are driving the rapid evolution of:
a) Laptop
b) Tablet
c) Mobile Device
d) Radio
90. Mobile gaming has been described as the wide-open battle ground of the:
a) Professional Industry
b) Application Industry
c) Entertainment Industry
d) All of these
91. For mobile marketing to work, consumers need to have confidence that their privacy will be________
a) Well crafted
b) Imaginative
c) Entertaining
d) Protected
92. Lots of energy and investment currently flowing into_______
a) Mobile cloud
b) Mobile data
c) Mobile Privacy
d) Mobile Apps
93. Technology has enhanced the process of refining the_________
a) Brand & quality
b) Products & brand
c) Products & Service
d) Quality & Quantity
94. What type of Marketing, Uniquely allows us to both broaden our scope and narrow our focus at the
same time_________
a) Digital Marketing
b) E-mail Marketing
c) Direct Marketing
d) All of these
95. Which one of the following is used for exchanging SMS messages.
a) SMPP
b) SMSC
c) SMS
d) SIM
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96. The Technology that allows user to store video content on their computer for viewing at a later date is
known as________
a) Deep-linking
b) Uploading
c) Downloading
d) None of these
97. Web design software that creates animation interactive elements and quick to download is:
a) Flash
b) Coral
c) Photoshop
d) Flash Impression
98. A group of computer connected together which are at one physical location is.
a) MAN
b) LAN
c) WAN
d) Link
99. The area where an Advertising is displayed/placed within a publisher’s mobile content is:
a) Placement
b) Podcasting
c) Pharming
d) Phishing
100. When a user makes a purchase from online advertiser is called______
a) Buy
b) Sale house
c) Sale
d) Both (a) & (c)
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