Here are 50+ multiple-choice questions (MCQs) based on the provided content about Harrah’s Entertainment Inc., along with the correct answers:
1. What does Harrah’s primarily sell to its customers?
a) Comfort
b) Convenience
c) Excitement
d) Luxury
Answer: c) Excitement
2. What strategy does Harrah's use to attract customers back to their casinos?
a) Offering discounted drinks
b) Offering loyalty cards
c) Increasing entry fees
d) Reducing slot machines
Answer: b) Offering loyalty cards
3. Why do people jump from one casino to another, according to the case study?
a) Better rewards elsewhere
b) Lack of loyalty to any one casino
c) Different locations
d) More options for dining
Answer: b) Lack of loyalty to any one casino
4. What analysis tool is used by Harrah’s for customer segmentation?
a) SWOT
b) RFM
c) PESTLE
d) BCG Matrix
Answer: b) RFM
5. How does Harrah's track customer behavior?
a) By recording their online activity
b) Through loyalty cards
c) By following their social media profiles
d) Using customer surveys
Answer: b) Through loyalty cards
6. What type of systems did Harrah’s install to monitor customers?
a) Marketing automation tools
b) IT systems that track every customer activity
c) Telemarketing systems
d) Customer survey platforms
Answer: b) IT systems that track every customer activity
7. What was the result of re-arranging slot machines in circles?
a) Increased the number of slot machines
b) Decreased the number of slot machines needed
c) Increased cost for slot machines
d) Reduced social interaction
Answer: b) Decreased the number of slot machines needed
8. What program did Harrah’s develop to increase customer loyalty?
a) RFM Program
b) Total Gold Program
c) VIP Program
d) Customer Satisfaction Program
Answer: b) Total Gold Program
9. What was Harrah's strategy to encourage customers to visit frequently?
a) Offering frequent flyer miles
b) Offering customized offers based on customer data
c) Offering one-time discounts
d) Offering free entry passes
Answer: b) Offering customized offers based on customer data
10. What major initiative did Loveman launch to build Harrah's brand?
a) Launching a new loyalty program
b) Building customer trust
c) Changing the organization structure
d) Offering discounts
Answer: c) Changing the organization structure
11. Harrah’s sought to become more customer-centric through which initiative?
a) Creating new games
b) Exploiting relationship marketing opportunities
c) Offering better hotel rooms
d) Launching a mobile app
Answer: b) Exploiting relationship marketing opportunities
12. What was a core element of Harrah’s CRM strategy?
a) Understanding every customer and targeting promotions to their specific needs
b) Sending out weekly newsletters
c) Offering free membership to all new customers
d) Running a monthly raffle
Answer: a) Understanding every customer and targeting promotions to their specific needs
13. What did the Total Gold Program help Harrah’s track?
a) Customer’s geographical location
b) Customer’s play preferences and patterns
c) Customer's credit score
d) Customer's work history
Answer: b) Customer’s play preferences and patterns
14. What type of marketing approach did Harrah’s adopt for its customers?
a) Mass marketing
b) Database marketing
c) Social media marketing
d) Event marketing
Answer: b) Database marketing
15. What was Harrah’s solution to its declining performance in the 1990s?
a) Launching more casinos
b) Issuing loyalty cards and creating a Winner’s Information Network
c) Increasing advertising spend
d) Reducing staff
Answer: b) Issuing loyalty cards and creating a Winner’s Information Network
16. Which of the following was a part of Loveman’s 4 major initiatives?
a) Increasing ad campaigns
b) Reducing customer data collection
c) Delivering extraordinary service
d) Launching a new casino
Answer: c) Delivering extraordinary service
17. Harrah's focused on customer retention by:
a) Offering same-day cash rewards
b) Educating property level managers
c) Lowering prices across all services
d) Eliminating loyalty programs
Answer: b) Educating property level managers
18. Harrah’s revenue model emphasized:
a) High-end food services
b) Increasing room revenue by offering last-minute bookings at higher rates
c) Raising entry fees
d) Offering free accommodations to loyal customers
Answer: b) Increasing room revenue by offering last-minute bookings at higher rates
19. Harrah's monitored customer loyalty through:
a) Slot machine monitoring
b) Tracking customer gaming activities via loyalty cards
c) Manual surveys
d) Email feedback
Answer: b) Tracking customer gaming activities via loyalty cards
20. The purpose of Harrah’s database marketing was to:
a) Predict customer worth
b) Lower marketing costs
c) Eliminate competition
d) Reduce customer spending
Answer: a) Predict customer worth
21. Harrah's used the BCG matrix to segment its customers. Which of the following groups were considered "stars"?
a) Customers who are not profitable
b) Customers with potential to become profitable
c) Customers who visit once a year
d) Customers with no loyalty
Answer: b) Customers with potential to become profitable
22. What is the ultimate goal of Harrah's CRM initiative?
a) To reduce customer interaction
b) To delight customers and create ecstasy
c) To minimize promotions
d) To discourage frequent visits
Answer: b) To delight customers and create ecstasy
23. What issue did Harrah’s face with its properties in the early 1990s?
a) Too much customer loyalty
b) Points earned at one property couldn’t be used at another
c) Frequent customer complaints about slot machines
d) Too many IT systems in place
Answer: b) Points earned at one property couldn’t be used at another
24. What role did the CEO play in Harrah’s earlier strategy?
a) Personally communicating with customers who won over a certain threshold
b) Reducing marketing budgets
c) Hiring more staff for customer service
d) Eliminating loyalty programs
Answer: a) Personally communicating with customers who won over a certain threshold
25. Harrah's designed a completely integrated IT system to:
a) Monitor competitor activity
b) Network all properties with customer-level information
c) Decrease data collection
d) Automate food service operations
Answer: b) Network all properties with customer-level information
26. Which marketing tool helped Harrah’s achieve better customer segmentation?
a) Social media analytics
b) Decision science tools
c) Focus groups
d) Customer satisfaction surveys
Answer: b) Decision science tools
27. Harrah's Total Rewards Program was designed to:
a) Increase the number of casinos
b) Capture a larger share of the customer’s gaming budget
c) Reduce promotional costs
d) Increase competition among customers
Answer: b) Capture a larger share of the customer’s gaming budget
28. What was Harrah's challenge in the late 1990s?
a) Lack of customer data
b) Competitors with better and flashier properties
c) Lack of IT systems
d) High customer loyalty
Answer: b) Competitors with better and flashier properties
29. Which program helped Harrah's consolidate customer data across all properties?
a) CRM Program
b) Total Rewards Program
c) Slot Machine Reorganization Program
d) Winner’s Information Network
Answer: b) Total Rewards Program
30. What change did Harrah’s make to improve socialization among customers?
a) Increased marketing budgets
b) Re-arranged slot machines in circles
c) Increased the number of casino games
d) Offered more food options
Answer: b) Re-arranged slot machines in circles
What is Harrah’s Entertainment Inc. selling according to the case?
a) Food
b) Excitement
c) Luxury
d) Entertainment
Answer: b) Excitement
Why are customers jumping from one casino to another?
a) Better service elsewhere
b) No loyalty to any one casino
c) Bigger jackpots
d) Free drinks
Answer: b) No loyalty to any one casino
What type of analysis did Harrah’s use for customer segmentation?
a) SWOT analysis
b) PESTLE analysis
c) RFM analysis
d) Gap analysis
Answer: c) RFM analysis
What does the loyalty card system at Harrah’s record?
a) Customer’s age
b) Customer’s activities in the casino
c) Customer’s address
d) Customer’s income
Answer: b) Customer’s activities in the casino
What was one major initiative launched by Loveman to make customers loyal to Harrah’s?
a) Changing organization structure
b) Offering free meals
c) Replacing old slot machines
d) Closing competing casinos
Answer: a) Changing organization structure
Which service improvement did Harrah’s focus on to enhance customer satisfaction?
a) Faster service
b) Better food options
c) Re-arranging slot machines in circles
d) Adding more slot machines
Answer: c) Re-arranging slot machines in circles
What is one example Harrah’s took inspiration from to generate more revenue from rooms?
a) Uber's dynamic pricing
b) Airline ticketing schemes
c) Hotel loyalty programs
d) Movie theaters
Answer: b) Airline ticketing schemes
What was a significant problem faced by Harrah’s in the 1990s?
a) Lack of technology
b) Competitors had better properties
c) Lack of staff
d) Poor customer reviews
Answer: b) Competitors had better properties
How did Harrah’s respond to the lack of marketing consistency across its properties?
a) Built flashier casinos
b) Launched a centralized loyalty card system
c) Created separate marketing strategies for each property
d) Increased advertising spend
Answer: b) Launched a centralized loyalty card system
What was the main goal of the Total Rewards Program at Harrah’s?
a) To increase food sales
b) To attract new customers
c) To consolidate customer data and provide rewards
What was the key to Harrah's data-driven marketing strategy?
a) Random surveys
b) Personal interactions with customers
c) Customer data analysis
d) Television advertisements
Answer: c) Customer data analysis
Which department at Harrah’s played a central role in leveraging data for customer insight?
a) Finance
b) Marketing
c) Operations
d) Human Resources
Answer: b) Marketing
In Harrah’s view, what created a long-term competitive advantage?
a) Property expansion
b) Exceptional data analytics
c) Location of the casino
d) Quality of food and drinks
Answer: b) Exceptional data analytics
What was Harrah’s focus when deciding where to invest its resources?
a) Building new casinos
b) Enhancing customer loyalty
c) Expanding internationally
d) Reducing employee count
Answer: b) Enhancing customer loyalty
Which of the following was NOT one of Harrah’s competitive strategies?
a) Offering luxurious properties
b) Focus on customer retention
c) Using customer data for targeted marketing
d) Offering Total Rewards points
Answer: a) Offering luxurious properties
Harrah's used which technology to analyze customer preferences?
a) CRM (Customer Relationship Management) software
b) Data mining techniques
c) Mobile app analytics
d) Social media analysis
Answer: b) Data mining techniques
What kind of reward system was implemented at Harrah’s to increase customer visits?
a) Financial cashback
b) Total Rewards loyalty program
c) Free hotel stays
d) Airline miles
Answer: b) Total Rewards loyalty program
Harrah’s aimed to increase profits by focusing on which customer segment?
a) High rollers
b) Middle-income frequent customers
c) International tourists
d) VIPs only
Answer: b) Middle-income frequent customers
What was one of the key reasons for the success of Harrah’s loyalty program?
a) Offering discounts on luxury items
b) Providing instant rewards
c) Gathering and utilizing extensive customer data
d) Providing free limousine services
Answer: c) Gathering and utilizing extensive customer data
Which of the following was NOT an outcome of Harrah’s use of data-driven strategies?
a) Increased customer satisfaction
b) Decreased customer retention
c) Targeted marketing campaigns
d) Improved financial performance
Answer: b) Decreased customer retention
What did Harrah’s emphasize more in comparison to its competitors?
a) Flashy appearances
b) Data-based decision making
c) Increased employee numbers
d) Low-cost rooms
Answer: b) Data-based decision making
How did Harrah’s treat infrequent customers compared to frequent customers?
a) Gave them fewer rewards
b) Focused more marketing efforts on them
c) Provided more free services
d) Ignored them completely
Answer: a) Gave them fewer rewards
What was Harrah’s Total Rewards program designed to do?
a) Reward all customers equally
b) Track and reward customer loyalty
c) Reduce marketing costs
d) Improve food service
Answer: b) Track and reward customer loyalty
Which element was key to personalizing customer experiences at Harrah’s?
a) Online surveys
b) Predictive analytics
c) Focus groups
d) Casino decor
Answer: b) Predictive analytics
Harrah’s management realized that focusing on customer loyalty could lead to what long-term benefit?
a) More luxurious hotels
b) Higher market share
c) Reduced competition
d) Decreased marketing expenses
Answer: b) Higher market share
What was one tactic used by Harrah’s to retain customers?
a) Building bigger casinos
b) Offering targeted promotions based on individual preferences
c) Lowering slot machine payouts
d) Extending operating hours
Answer: b) Offering targeted promotions based on individual preferences
What was the role of the Marketing Workbench in Harrah’s strategy?
a) It managed the casino's physical layout
b) It centralized all marketing decisions
c) It provided analysis of customer behavior
d) It was used for staff training
Answer: c) It provided analysis of customer behavior
What data was most crucial to Harrah’s marketing success?
a) Customer spending habits and frequency of visits
b) Customer demographics only
c) Employee productivity data
d) Customer complaints and feedback
Answer: a) Customer spending habits and frequency of visits
Which of the following was a unique approach Harrah’s used to gain customer loyalty?
a) Building ultra-luxury casinos
b) Rewarding customers based on actual spending
c) Focusing on celebrity endorsements
d) Offering free parking
Answer: b) Rewarding customers based on actual spending
Which competitor had more extravagant casinos compared to Harrah’s?
a) MGM Grand
b) Circus Circus
c) Caesar's Palace
d) Bellagio
Answer: d) Bellagio
