PCM Customer Behavior & Insights 3 — Questions and Answers
Question 1: Which segmentation approach groups customers based on their actual purchasing patterns and engagement history rather than demographic characteristics?
- Geographic segmentation
- Psychographic segmentation
- Behavioral segmentation (Correct answer)
- Firmographic segmentation
Correct answer: Behavioral segmentation
Behavioral segmentation uses observed actions such as purchase frequency, brand loyalty, and product usage to group customers.
Question 2: A retailer finds that placing premium products next to ultra-premium products increases sales of the premium tier. This is an example of:
- Framing effect
- The anchoring effect (Correct answer)
- Availability heuristic
- Confirmation bias
Correct answer: The anchoring effect
Anchoring occurs when consumers use the highest-priced item as a reference point, making adjacent premium products seem more reasonably priced.
Question 3: In customer journey mapping, 'moments of truth' refer to:
- Touchpoints where customers form lasting impressions about the brand (Correct answer)
- The moment a customer first sees an advertisement
- The final purchase transaction
- Post-purchase return interactions
Correct answer: Touchpoints where customers form lasting impressions about the brand
Moments of truth are critical touchpoints in the customer journey where experiences significantly shape a customer's perception and loyalty.
Question 4: Which Voice of the Customer (VoC) metric measures customer loyalty by asking how likely they are to recommend the brand?
- Customer Effort Score (CES)
- Customer Satisfaction Score (CSAT)
- Net Promoter Score (NPS) (Correct answer)
- Churn Rate
Correct answer: Net Promoter Score (NPS)
NPS asks customers how likely they are to recommend the company on a 0–10 scale, classifying them as Promoters, Passives, or Detractors.
Question 5: A brand notices that customers who switch to a competitor cite 'better customer service' rather than price. This type of data is classified as:
- Structured quantitative data
- Transactional data
- Qualitative attitudinal data (Correct answer)
- Behavioral clickstream data
Correct answer: Qualitative attitudinal data
Reasons for switching based on customer perceptions and opinions are qualitative attitudinal data, revealing feelings and motivations.
Question 6: According to the Theory of Planned Behavior, which factor is NOT a direct antecedent of behavioral intention?
- Attitude toward the behavior
- Subjective norms
- Perceived behavioral control
- Past purchase frequency (Correct answer)
Correct answer: Past purchase frequency
The Theory of Planned Behavior identifies attitude, subjective norms, and perceived behavioral control as the three direct antecedents of intention; past behavior is not a direct component.
Question 7: A company uses RFM analysis to score its customers. A customer with high Recency, high Frequency, and high Monetary scores is best described as:
- At-risk customer
- Lost customer
- Champion customer (Correct answer)
- Promising customer
Correct answer: Champion customer
In RFM analysis, customers who score high on all three dimensions are 'Champions'—they buy often, recently, and spend the most.
PCM Customer Behavior & Insights 3
Which segmentation approach groups customers based on their actual purchasing patterns and engagement history rather than demographic characteristics?