Ch.11 CRM & Supply Chain Test Bank Test Bank Answers Rainer - Info Systems Canada 5e | Exam Pack by R. Kelly Rainer. DOCX document preview.
Package Title: Chapter 11, Testbank
Course Title: Rainer, IS 5e
Chapter Number: 11
Question Type: Multiple Choice
1) Tesco implemented a new _______ system to address their business needs.
a) CRM
b) ERP
c) RFID
d) SCM
Difficulty: Easy
Section Reference 1: Opening Case
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
2) Tesco primarily had a problem with __________.
a) checkout flow
b) customer acquisition
c) product display
d) shipping products
Difficulty: Easy
Section Reference 1: Opening Case
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
3) What challenge did Tesco face when they were searching for a CRM solution?
a) For many years, the company had been adding and updating their systems to support its website, resulting in redundancies and inconsistencies.
b) Since Tesco had been adding more services to its online presence, they had a minimal budget to implement structural strategies/changes.
c) Tesco’s platforms were not advanced enough to support a CRM solution so it to start entirely from scratch and lost much of its historical data.
d) Each of Tesco’s various silos required unique CRM solutions and the company was unable to find one solution that was applicable and implementable to all.
Difficulty: Medium
Section Reference 1: Opening Case
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Analysis
Standard 1: AACSB || Technology
4) ________ systems are important because customers are ________ powerful than ever; these systems put the intimacy back into customer service.
a) CRM; less
b) CRM; more
c) SCM; less
d) SCM; more
Difficulty: Easy
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
5) Businesses use customer ________ to create highly individualized offers that customers are more likely to accept.
a) customization
b) intimacy
c) personalization
d) virality
Difficulty: Easy
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
6) The optimal result of the organization’s CRM efforts is to ________ the number of high-value repeat customers while ________ customer churn.
a) maximize; maximizing
b) maximize; minimizing
c) minimize; maximizing
d) minimize; minimizing
Difficulty: Easy
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
7) ________ is the customer’s potential revenue stream over a number of years.
a) Customer churn
b) Customer life cycle
c) Lifetime value
d) Market capitalization
Difficulty: Medium
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
8) ________ is the loss of a certain percentage of customers over time.
a) Customer churn
b) Customer life cycle
c) Lifetime value
d) Market capitalization
Difficulty: Medium
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
9) ________ is the number of shares of the company’s stock outstanding multiplied by the price per share of the stock.
a) Customer churn
b) Customer life cycle
c) Lifetime value
d) Market capitalization
Difficulty: Easy
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
10) Amazon uses a _________-end CRM system because it ________.
a) low; coordinates staff activities in a campaign to sell its products
b) low; recommends products to returning customers
c) high; coordinates staff activities in a campaign to sell its products
d) high; recommends products to returning customers
Difficulty: Hard
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Application, Synthesis
Standard 1: AACSB || Technology
11) Boeing uses a _________-end CRM system because it ________.
a) low; coordinates staff activities in a campaign to sell its products
b) low; recommends products to returning customers
c) high; coordinates staff activities in a campaign to sell its products
d) high; recommends products to returning customers
Difficulty: Hard
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Application, Synthesis
Standard 1: AACSB || Technology
12) Indochino Inc., a menswear retailer is as an online business where customers ___________
.
a) Compare prices for multiple online stores
b) Can get a discount for a set of online stores
c) Find the cheapest clothes on the internet according to customer’s needs
d) Could take their measurements, select their fabric, and personalize their garment on the website
Difficulty: Easy
Section Reference 1: IT’s About Business 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
13) Indochino strives to make its customers’ journeys high-touch through ______________.
a) Omni-channelling
b) Showrooming
c) Bargaining
d) Product displaying
Difficulty: Easy
Section Reference 1: IT’s About Business 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
14) Indochino is planning to add text messaging to its touch points with customers. The text messages will mainly be used for all the reasons below EXCEPT______
a) confirm appointments.
b) send reminders.
c) send discount coupons.
d) update customers about the status of their delivery.
Difficulty: Easy
Section Reference 1: IT’s About Business 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Application
Standard 1: AACSB || Technology
15) Because the need to have a centralized data about customers and internal processes, Indochino in 2016 decided to adopt _________.
a) Netsuite.
b) Oracle’s database.
c) SAP all in one.
d) Salesforce.
Difficulty: Medium
Section Reference 1: IT’s About Business 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Analysis
Standard 1: AACSB || Technology
16) Operational CRM systems support __________-office business processes.
a) back
b) east
c) front
d) west
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
17) Operational CRM systems support _________-office business processes or processes that _________.
a) back; directly interact with customers
b) back; do not directly interact with customers
c) front; directly interact with customers
d) front; do not directly interact with customers
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
18) ________ is a customer-facing CRM application.
a) E-mail
b) FAQ
c) Search
d) SFA
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
19) ________ are/is a customer-touching CRM application.
a) CMAs
b) CIC
c) FAQs
d) SFA
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
20) ________ is a CRM operation in which organizational representatives use multiple channels to communicate with customers.
a) CIC
b) CMA
c) JIT
d) SFA
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
21) A call center is a _________.
a) CIC
b) CMA
c) JIT
d) SFA
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
22) ________ is the component of an operational CRM system that automatically records all of the components in a sales transaction process.
a) CIC
b) CMA
c) JIT
d) SFA
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
23) A ________ system tracks all communications between the company and the customer, the purpose of each communication, and any necessary follow-up.
a) contact management
b) product knowledge
c) sales forecasting
d) sales lead tracking
Difficulty: Medium
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
24) A _________ system lists potential customers or customers who have purchased related products; that is, products similar to those that the salesperson is trying to sell to the customer.
a) contact management
b) product knowledge
c) sales forecasting
d) sales lead tracking
Difficulty: Medium
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
25) A ________ system is a mathematical technique for estimating future sales.
a) contact management
b) product knowledge
c) sales forecasting
d) sales lead tracking
Difficulty: Medium
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
26) A ________ system is a comprehensive source of information regarding products and services.
a) contact management
b) product knowledge
c) sales forecasting
d) sales lead tracking
Difficulty: Medium
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
27) ________ is the marketing of additional related products to customers based on a previous purchase.
a) Bundling
b) Cross-selling
c) Downselling
d) Upselling
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
28) ________ is a strategy in which the salesperson provides customers with the opportunity to purchase related products or services of greater value in place of, or along with, the consumer’s initial product or service selection.
a) Bundling
b) Cross-selling
c) Downselling
d) Upselling
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
29) ________ is when a business sells a group of products or services together at a lower price than their combined individual prices.
a) Bundling
b) Cross-selling
c) Downselling
d) Upselling
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
30) Amazon’s recommender system is an example of ________.
a) bundling
b) cross-selling
c) downselling
d) upselling
Difficulty: Hard
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Evaluation
Standard 1: AACSB || Technology
31) Your cable company sells you package deal with internet, phone, and TV. This is an example of __________.
a) bundling
b) cross-selling
c) downselling
d) upselling
Difficulty: Medium
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Application
Standard 1: AACSB || Technology
32) You want to buy a 65” TV, but a sales representative talks you into the 70” TV because it is only a little more expensive and will still fit nicely into that spot on your wall. This is an example of ________.
a) bundling
b) cross-selling
c) downselling
d) upselling
Difficulty: Medium
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Application
Standard 1: AACSB || Technology
33) Analytical CRM systems provide ________ by analyzing customer behavior and perceptions.
a) BI
b) CIC
c) ERP
d) SFA
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
34) ________ is an analytical CRM technology.
a) CMA
b) OLAP
c) OLTP
d) SFA
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
35) ________ is NOT an important technology in analytical CRM systems.
a) BI
b) Campaign management
c) Data mining
d) OLAP
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
36) In 2014, Sun Life embarked on a long-term sales transformation initiative. As part of this program, the company deployed the.
a) Sales Cloud CRM
b) Sales Cloud ERP
c) Customer Cloud CRM
d) Customer Cloud ERP
Difficulty: Easy
Section Reference 1: IT’s About Business 11.2
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
37) Sun Life sales representatives use the _______
to analyze data about advisors and also share information with teams working in the wealth and insurance fields.
a) CRM
b) ERP
c) SCM
d) AI
Difficulty: Easy
Section Reference 1: IT’s About Business 11.2
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
38) Which is NOT an added functionality to the CRM of Sunlife ?
a) dynamic dashboards
b) showing visual representations of sales performance
c) showing visual representations of opportunities.
d) showing visual representations of competition performance.
Difficulty: Easy
Section Reference 1: IT’s About Business 11.2
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Comprehension
Standard 1: AACSB || Technology
39)
After Salesforce solutions were implemented at Sun Life, the company announced an expectation to___________..
a) to boost revenue growth in Sun Life’s Individual Insurance and Investments business unit by up to 10 percent over the next three years. b) to decrease cost in Sun Life’s Individual Insurance and Investments business unit by up to 10 percent over the next three years.
c) to boost customer growth in Sun Life’s Individual Insurance and Investments business unit by up to 10 percent over the next three years.
d) to boost profit growth in Sun Life’s Individual Insurance and Investments business unit by up to 10 percent over the next three years.
Difficulty: Easy
Section Reference 1: IT’s About Business 11.2
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Comprehension
Standard 1: AACSB || Technology
40) Sales Cloud CRM with the Distribution and Marketing teams can assess _________..
a) the impact of key activities that each advisor engages in.
b) the impact of sales on financial performance.
c) the impact of budgets on advertising performance.
d) the impact of investments on sales performance.
Difficulty: Easy
Section Reference 1: IT’s About Business 11.2
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Comprehension
Standard 1: AACSB || Technology
41) Sun Life sales representatives use the CRM to ________.
a) identify opportunities to down-sell and upsell.
b) identify opportunities to cross-sell and upsell. c) identify opportunities to cross-sell and down-sell .
d) identify opportunities to down-sell and upsell .
Difficulty: Easy
Section Reference 1: IT’s About Business 112
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Comprehension
Standard 1: AACSB || Technology
42) By running _________ and _______ side by side, Black Diamond was able to compare results and make an informed decision about which solution to implement.
a) Salesforce Einstein; a third-party solution
b) Salesforce Einstein; Salesforce Decider
c) NFC; CRM
d) Salesforce AI; Google Merchant
Difficulty: Easy
Section Reference 1: IT’s About Business 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
43) A _____________ is a tool that uses mathematical algorithms to predict consumers’ likes and dislikes.
a) third-party app
b) recommendation engine
c) cloud-based sales server
d) analytic tool
Difficulty: Easy
Section Reference 1: IT’s About Business 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
44) One of the reasons that Salesforce Einstein was selected by Black Diamond was ______.
a) it decreased conversion rates
b) it offered money-back guarantees
c) it functioned in real time
d) it was more customizable
Difficulty: Easy
Section Reference 1: IT’s About Business 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
45) ____________ is/are analyzed to help Salesforce Einstein anticipate what products should be recommended to customers.
a) Historical data
b) Consumer demographics
c) Industry trends
d) Price matching
Difficulty: Easy
Section Reference 1: IT’s About Business 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
46) ________ CRM systems are purchased from a vendor and then installed on site.
a) On-demand
b) On-premise
c) Mobile
d) Social
Difficulty: Easy
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
47) You decide to purchase Oracle’s Netsuite CRM+ system. This is an example of a(n) ________ CRM system.
a) on-demand
b) on-premise
c) mobile
d) social
Difficulty: Medium
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Application
Standard 1: AACSB || Technology
48) ________ CRM systems are hosted by an external vendor in the vendor’s data center.
a) On-demand
b) On-premise
c) Mobile
d) Social
Difficulty: Easy
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
49) The concept of ________ is also known as utility computing or ________.
a) on-demand; ERP
b) on-demand; SaaS
c) on-premise; ERP
d) on-premise; SaaS
Difficulty: Easy
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
50) ________ is the best-known on-demand CRM vendor.
a) Microsoft
b) Oracle
c) Salesforce
d) SAP
Difficulty: Medium
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Application
Standard 1: AACSB || Technology
51) ________ CRM systems are interactive systems that enable organizations to conduct communications related to sales, marketing, and customer service activities through portable devices for the purpose of building and maintaining relationships with its customers.
a) On-demand
b) On-premise
c) Open-source
d) Mobile
Difficulty: Easy
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
52) It is really important that your customers are able to contact you anytime, anywhere, from any device. This suggests you should implement a(n) ________ CRM system.
a) on-demand
b) on-premise
c) open-source
d) mobile
Difficulty: Medium
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Application
Standard 1: AACSB || Technology
53) ________ CRM systems have source code that is available to developers and users.
a) On-demand
b) On-premise
c) Open-source
d) Social
Difficulty: Easy
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
54) Above all, you want to implement the cheapest CRM system available. You are willing to accept any risks associated with this, so you would want to implement a(n) ________ CRM system.
a) mobile
b) on-premise
c) open-source
d) social
Difficulty: Medium
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Application
Standard 1: AACSB || Technology
55) ________ CRM systems use social media technology and services to enable organizations to engage their customers in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent manner.
a) On-demand
b) On-premise
c) Open-source
d) Social
Difficulty: Easy
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
56) Morton’s Steakhouse utilized a(n) ________ CRM system to surprise a customer with a meal.
a) mobile
b) open-source
c) real-time
d) social
Difficulty: Medium
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Application
Standard 1: AACSB || Technology
57) Southwest Airlines utilized a(n) ________ CRM system to rearrange a customer’s flight schedule to get to her comatose son.
a) mobile
b) open-source
c) real-time
d) social
Difficulty: Medium
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Application
Standard 1: AACSB || Technology
58) Which of the following does NOT help with managing supply chain information?
a) CRM
b) GPS
c) RFID
d) SCM
Difficulty: Easy
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
59) Sourcing and procurement from external suppliers are ________ activities.
a) downstream
b) internal
c) upstream
d) irrelevant
Difficulty: Easy
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
60) You purchase the raw metal, glass, and leather to manufacture your new car from various suppliers. You are conducting business ________.
a) downstream
b) internally
c) upstream
d) foolishly
Difficulty: Medium
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Application
Standard 1: AACSB || Technology
61) Packing, assembly, or manufacturing are ________ activities.
a) downstream
b) internal
c) upstream
d) irrelevant
Difficulty: Easy
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
62) You work on the assembly line of a BMW in South Carolina. This is a(n) ________ activity.
a) downstream
b) internal
c) upstream
d) irrelevant
Difficulty: Medium
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Application
Standard 1: AACSB || Technology
63) Distribution is a(n) ________ activity.
a) downstream
b) internal
c) upstream
d) irrelevant
Difficulty: Easy
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
64) You use FedEx and UPS to ship your products to customers. This is an example of a(n) ________ activity.
a) downstream
b) internal
c) upstream
d) irrelevant
Difficulty: Medium
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Application
Standard 1: AACSB || Technology
65) ________ flows are the physical products, raw materials, supplies, and so forth that flow along the chain.
a) Financial
b) Information
c) Material
d) Supply
Difficulty: Easy
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
66) ________ flows consist of data related to demand, shipments, orders, returns, and schedules, as well as changes in any of these data.
a) Financial
b) Information
c) Material
d) Supply
Difficulty: Easy
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
67) ________ flows involve money transfers, payments, credit card information and authorization, payment schedules, e-payments, and credit-related data.
a) Financial
b) Information
c) Material
d) Supply
Difficulty: Easy
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
68) Organizations must have a strategy for managing all the resources that are involved in meeting customer demand for their product or service. This strategy is developed in the ________ component of SCM.
a) deliver
b) make
c) plan
d) return
e) source
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
69) In the ________ component of SCM, organizations choose suppliers to deliver the goods and services they need to create their product or service.
a) deliver
b) make
c) plan
d) return
e) source
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
70) In the ________ component of SCM, supply chain managers develop pricing, delivery, and payment processes with suppliers, and they create metrics to monitor and improve their relationships with their suppliers.
a) deliver
b) make
c) plan
d) return
e) source
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
71) In the ________ component of SCM, supply chain managers develop processes for managing their goods and services inventory.
a) deliver
b) make
c) plan
d) return
e) source
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
72) In the ________ component of SCM, supply chain managers schedule the activities necessary for production, testing, packaging, and preparation for delivery.
a) deliver
b) make
c) plan
d) return
e) source
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
73) The ________ component of SCM is the most metric-intensive part of the supply chain in which organizations measure quality levels, production output, and worker productivity.
a) deliver
b) make
c) plan
d) return
e) source
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
74) The ________ component of SCM is often referred to as logistics.
a) deliver
b) make
c) plan
d) return
e) source
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
75) In the ________ component of SCM, organizations coordinate the receipt of customer orders, develop a network of warehouses, select carriers to transport their products to their customers, and create an invoicing system to receive payments.
a) deliver
b) make
c) plan
d) return
e) source
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
76) In the ________ component of SCM, supply chain managers create a responsive and flexible network for receiving defective, returned, or excess products back from their customers, as well as for supporting customers who have problems with delivered products.
a) deliver
b) make
c) plan
d) return
e) source
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
77) The push model is also called ________ which means the production process begins with a ________.
a) make-to-order; customer order
b) make-to-order; forecast
c) make-to-stock; customer order
d) make-to-stock; forecast
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
78) The pull model is also called ________ which means the production process begins with a ________.
a) make-to-order; customer order
b) make-to-order; forecast
c) make-to-stock; customer order
d) make-to-stock; forecast
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
79) The pull model is also known as ________ which is closely aligned with mass ________.
a) make-to-order; customization
b) make-to-order; production
c) make-to-stock; customization
d) make-to-stock; production
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
80) ________ refers to erratic shifts in orders up and down the supply chain.
a) JIT
b) The bullwhip effect
c) Vertical integration
d) VMI
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
81) Stockpiling is most likely to occur with ________.
a) ERP
b) the bullwhip effect
c) vertical integration
d) VMI
Difficulty: Medium
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
82) ________ is a business strategy in which a company purchases its upstream suppliers to ensure that its essential supplies are available as soon as the company needs them.
a) JIT
b) The bullwhip effect
c) Vertical integration
d) VMI
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
83) ________ is a business strategy in which a company purchases its ________ suppliers to ensure that its essential supplies are available as soon as the company needs them.
a) Vertical integration; downstream
b) Vertical integration; upstream
c) VMI; downstream
d) VMI; upstream
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
84) ________ delivers the precise number of parts to be assembled into a finished product at precisely the right time.
a) JIT
b) The bullwhip effect
c) Vertical integration
d) VMI
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
85) ________ occurs when the supplier, rather than the retailer, manages the entire inventory process for a particular product or group of products.
a) JIT
b) The bullwhip effect
c) Vertical integration
d) VMI
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
86) The Walmart and P&G relationship is an example of ________.
a) JIT
b) the bullwhip effect
c) vertical integration
d) VMI
Difficulty: Medium
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Application
Standard 1: AACSB || Technology
87) Zara’s fast fashion business model requires; this makes ____critical to their success.
a) CRM
b) ERP
c) RFID
d) SCM
Difficulty: Easy
Section Reference 1: IT’s About Business 11.4
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
88) Zara produces relatively few items of a given design to create a perceived scarcity of these designs called short ______.
a) production runs
b) production time
c) turnaround runs
d) turnaround time
Difficulty: Easy
Section Reference 1: IT’s About Business 11.4
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
89) _________ is a communication standard that enables business partners to exchange routine documents electronically.
a) EDI
b) ERP
c) JIT
d) VMI
Difficulty: Easy
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
90) EDI increases _________.
a) cycle time
b) data entry errors
c) message length
d) productivity
Difficulty: Easy
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
91) EDI decreases _________.
a) customer service
b) message length
c) productivity
d) security
Difficulty: Easy
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
92) ________ is a disadvantage of EDI.
a) Message length
b) Productivity
c) Security
d) The number of standards
Difficulty: Easy
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
93) ________ link(s) business partners over ________ by providing them access to certain areas of each other’s corporate ________.
a) Extranets; the Internet; intranets
b) Intranets; extranets; the internet
c) The Internet; extranets; intranets
d) The Internet; intranets; extranets
Difficulty: Easy
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
94) Extranets use ________ technology to make communication over the internet more secure.
a) JIT
b) RFID
c) VMI
d) VPN
Difficulty: Medium
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
95) ANXeBusiness is an example of ________.
a) a portal and exchange
b) an extranet for a company and its dealers, customers, or suppliers
c) an industry’s extranet
d) joint ventures and other business partnerships
Difficulty: Medium
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Application
Standard 1: AACSB || Technology
96) Flexe is the _______ of warehousing.
a) Airbnb
b) Amazon
c) Google
d) Twitter
Difficulty: Easy
Section Reference 1: IT’s About Business 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
97) Flexe helps start-ups and small businesses compete with ____ more effectively.
a) Amazon
b) Facebook
c) Google
d) Walmart
Difficulty: Easy
Section Reference 1: IT’s About Business 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
98) Which is NOT a reason that Flexe provides such a valuable service to smaller companies?
a) Flexe applies the companies’ own branding to boxes
b) Flexe offers overnight ground service to nearly all of the U.S.
c) Flexe has to ability to help expand holiday pop-up stores beyond their temporary locations
d) Flexe offers CRM solutions that can reroute customers from Amazon.com to competitor websites
Difficulty: Medium
Section Reference 1: IT’s About Business 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Application
Standard 1: AACSB || Technology
99) ________ is critical to Amazon’s success.
a) ERP
b) JIT
c) SCM
d) VMI
Difficulty: Easy
Section Reference 1: Closing Case
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
100) Amazon uses a(n) ________ SCM system.
a) mobile
b) open-source
c) proprietary, on-premise
d) social
Difficulty: Medium
Section Reference 1: Closing Case
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
101) Which of the following is NOT a change Amazon made after the 2013 holiday season?
a) Adding more sorting centers
b) Getting the USPS to delivery on Sundays
c) Updating its SCM system
d) Utilizing Amazon-dedicated trucks offered by UPS
Difficulty: Medium
Section Reference 1: Closing Case
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
102) Amazon is trying to expand into ________.
a) Africa
b) China
c) Europe
d) Russia
Difficulty: Easy
Section Reference 1: Closing Case
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
Question type: True/False
103) Indochino Inc. is the world’s largest custom suit maker an online business where customers
could take their measurements, select their fabric, and personalize their garment on the website. .
Difficulty: Easy
Section Reference 1: Opening Case
Learning Objective 1: Identify the primary functions of both customer and relationship management (CRM) and collaborative CRM strategies.
Learning Objective 2: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Analysis
Standard 1: AACSB || Technology
104) The seamless and personal customers’ experience of Indochino would not
have been possible without having centralized data about customers and internal processes.
Difficulty: Easy
Section Reference 1: Opening Case
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Comprehension
Standard 1: AACSB || Technology
105) CRM is not a process or technology but rather a customer-centric way of thinking and acting.
Difficulty: Medium
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
106) Repeat customers are the largest generator of revenue for an enterprise.
Difficulty: Medium
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
107) Winning back a customer who has switched to a competitor is vastly more expensive than keeping that customer satisfied in the first place.
Difficulty: Easy
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
108) The fundamental concept of CRM is to treat different customers differently because their needs differ and their value to the company may also differ.
Difficulty: Easy
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
109) Low-end CRM systems are designed for companies like Boeing because they only have a few, large customers.
Difficulty: Medium
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
110) High-end CRM systems are designed for companies like Amazon because they are so large and have so many different customers.
Difficulty: Medium
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
111) Low-end CRM systems are designed for enterprises with many small customers.
Difficulty: Medium
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
112) High-end CRM systems are designed for enterprises with a few large customers.
Difficulty: Medium
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
113) Cooperative CRM systems provide effective and efficient interactive communication with the customer throughout the entire organization.
Difficulty: Easy
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
114) Timberland used NFC to address the showrooming problem.
Difficulty: Easy
Section Reference 1: IT’s About Business 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
115) Bundling is a form of upselling.
Difficulty: Hard
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Evaluation
Standard 1: AACSB || Technology
116) CMA is a way for organizations to avoid targeting people who have opted out of receiving marketing communications.
Difficulty: Medium
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
117) Customer-facing CRM applications allow customers to self-serve.
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
118) The purpose of loyalty programs is to reward past behavior.
Difficulty: Hard
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Evaluation
Standard 1: AACSB || Technology
119) Analytical CRM systems are the input for operational CRM systems.
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
120) Data from customer-facing and customer-touching applications are the inputs for analytical CRM systems.
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
121) Sun Life sales representatives use the ERP to analyze data about advisors..
Difficulty: Easy
Section Reference 1: IT’s About Business 11.2
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
122) Open-source CRM systems must be implemented on-premise because they require coding by internal programmers to meet the company’s needs.
Difficulty: Easy
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
123) On-premise CRM systems are the most secure of all the CRM application options.
Difficulty: Hard
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Evaluation
Standard 1: AACSB || Technology
124) The higher the inventory velocity, the more satisfied the company’s customers will be.
Difficulty: Medium
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
125) The supply chain always flows downstream.
Difficulty: Easy
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
126) If you want to return a defective product to the supplier, this is an example of an upstream flow of the supply chain.
Difficulty: Medium
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Application
Standard 1: AACSB || Technology
127) Supply chains require material, information, and financial flows.
Difficulty: Hard
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Evaluation
Standard 1: AACSB || Technology
128) SCM systems are a type of interorganizational IS.
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
129) The push model is also called make-to-order.
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
130) When the production process begins with a customer order, it is a pull model.
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
131) Forecasts are typically accurate which is why most companies utilize the push model.
Difficulty: Medium
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Analysis
Standard 1: AACSB || Technology
132) Cars are typically produced using the pull model.
Difficulty: Medium
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Application
Standard 1: AACSB || Technology
133) Dell Computer uses the pull model.
Difficulty: Medium
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Application
Standard 1: AACSB || Technology
134) Zara keeps most of its manufacturing capacity idle so it can respond to demand changes with more agility than its competitors.
Difficulty: Easy
Section Reference 1: IT’s About Business 11.4
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
135) One reason Zara is so successful is because it operates in the fast fashion space, which means instead of 6-month seasonal output, it commits to short-term demand forecasts of around 2 to 6 weeks.
Difficulty: Easy
Section Reference 1: IT’s About Business 11.4
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
136) Ryder is an excellent example of how vertical integration is always the best solution to supply chain problems like theirs.
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
137) JIT eliminates excess inventory.
Difficulty: Medium
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
138) JIT shifts inventory downstream.
Difficulty: Hard
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Synthesis
Standard 1: AACSB || Technology
139) JIT shifts inventory upstream.
Difficulty: Hard
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Synthesis
Standard 1: AACSB || Technology
140) Some companies are trying to replace EDI with XML.
Difficulty: Easy
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
141) Intranets link business partners over the internet by providing them access to certain areas of each other’s corporate extranets.
Difficulty: Easy
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
142) The primary goal of extranets is to foster collaboration between and among business partners.
Difficulty: Medium
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
143) The primary goal of intranets is to foster collaboration between and among business partners.
Difficulty: Medium
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
144) Procurement portals are for a company’s suppliers.
Difficulty: Easy
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
145) Distribution portals are for a company’s customers.
Difficulty: Easy
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
146) Distribution portals automate the business processes involved in purchasing or procuring products between a single buyer and multiple suppliers.
Difficulty: Easy
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
147) Distribution portals automate the business processes involved in selling or distributing products from a single supplier to multiple buyers.
Difficulty: Easy
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
148) Dell services its business customers through its distribution portal.
Difficulty: Medium
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Application
Standard 1: AACSB || Technology
149) Flexe offers an SCM solution for businesses to compete with Amazon.
Difficulty: Easy
Section Reference 1: IT’s About Business 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
150) Amazon’s fulfillment process is fully automated (no humans are involved) .
Difficulty: Medium
Section Reference 1: Closing Case
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
151) Amazon improved its efficiency after the 2013 holiday season by reducing the number of sorting centers in its distribution channel.
Difficulty: Easy
Section Reference 1: Closing Case
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
Question type: Text Entry
152) Over time, all organizations inevitably lose a percentage of customers, a process called ___.
Difficulty: Medium
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
153) The organization’s numerous and diverse interactions with customers are called ___.
Difficulty: Medium
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
154) ___ systems provide effective and efficient interactive communication with the customer throughout the entire organization.
Difficulty: Easy
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
155) Customer-___ CRM applications allow customers to help themselves.
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
156) ___ CRM systems provide business intelligence by analyzing customer behavior and perceptions.
Difficulty: Easy
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
157) Salesforce Einstein is an AI product.
Difficulty: Easy
Section Reference 1: IT’s About Business 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
158) A(n) ___ CRM system is one that is hosted by an external vendor in the vendor’s data center.
Difficulty: Easy
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
159) ___ CRM systems are CRM systems whose source code is available to developers and users.
Difficulty: Easy
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
160) A(n) ___ is the flow of materials, information, money, and services from raw material suppliers, through factories and warehouses, to the end customers.
Difficulty: Easy
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
161) ___ refers to the ability of all organizations within a supply chain to access or view relevant data on purchased materials as these materials move through their suppliers’ production processes and transportation networks to their receiving docks.
Difficulty: Easy
Section Reference 1: 11.4
Learning Objective 1: Describe the three components and the three flows of a supply chain.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
162) The function of ___ is to improve the processes a company uses to acquire the raw materials it needs to produce a product or service and then deliver that product or service to its customers.
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
163) The ___ refers to erratic shifts in orders up and down the supply chain.
Difficulty: Easy
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
164) ___ is a communication standard that enables business partners to exchange routine documents electronically.
Difficulty: Easy
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
165) ___ link business partners over the internet by providing them access to certain areas of each other’s corporate ___.
Answer 1: Extranets
Answer 2: intranets
Difficulty: Medium
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
166) ___ portals automate the business processes involved in purchasing or procuring products between a single buyer and multiple suppliers.
Difficulty: Easy
Section Reference 1: 11.6
Learning Objective 1: Explain the utility of each of the three major technologies that support supply chain management.
Bloomcode: Knowledge
Standard 1: AACSB || Technology
Question Type: Essay
167) Describe the CRM process. How does a company differentiate between a low- and high-value repeat customers? Why should customers be treated differently? How do you think customer touch points should be adjusted based on customer value?
Difficulty: Hard
Section Reference 1: 11.1
Learning Objective 1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.
Bloomcode: Comprehension, Application, Evaluation
Standard 1: AACSB || Communication
Standard 2 : AACSB || Analytic
Standard 3 : AACSB || Technology
Solution: 1) Marketing efforts – solicit potential customers
2) Some will purchase = customers and some will continue to purchase = repeat customers
3) Segment into high- and low-value customers based on lifetime value (how much money can be made off a customer over a number of years)
4) Some customers will be lost over time = customer churn
Differentiate based on how much money they spend over time
Why? Because some customers spend more money and should be “catered to” so they keep buying
Touch points: Everyone should have access to www, call center, etc., but not every customer should get targeted ads on their smartphone (potentially too impersonal or don’t want to irritate customers) or direct mail (this is expensive and is often ignored, so this should be reserved for special customers) or a sales representative (only large customers should have someone assigned to them) – students should discuss multiple touch points and justify their answer by using the terms high- and low-value customers (there could be multiple answers, but they should explain why not every touch point is appropriate for every customer)
168) What is the difference between customer-facing and customer-touching CRM applications? List and describe the different customer-facing and customer-touching CRM applications. Which applications would you use for high-value customers and why? Which applications would you use for low-value customers and why?
Difficulty: Hard
Section Reference 1: 11.2
Learning Objective 1: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Bloomcode: Synthesis
Standard 1: AACSB || Communication
Standard 2 : AACSB || Analytic
Standard 3 : AACSB || Technology
Solution: Customer-facing = employees interact directly with customers; customer interaction centers to communicate with customers via web, phone, fax, and face-to-face, salesforce automation use to keep records of all components in a sales transaction process, marketing to develop a purchasing profile and get people to spend more, and campaign management applications to send the right messages to the right people; more likely to use these for high-value customers in addition to customer-touching
Customer-touching = customers interact with applications directly instead of through an employee; search and comparison, websites, customized products, personalized web pages, FAQs, e-mail, loyalty programs (rewarded for repeat purchases); these are more likely for low-value but also high-value if people want to self-serve
169) List and describe the five alternatives to traditional, on-premise CRM systems. Suppose your organization cannot afford an on-premise CRM system; which of these alternatives would you choose to implement and why? In your answer, you should consider the advantages and disadvantages of each option.
Difficulty: Medium
Section Reference 1: 11.3
Learning Objective 1: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.
Bloomcode: Application, Analysis
Standard 1: AACSB || Communication
Standard 2 : AACSB || Analytic
Standard 3 : AACSB || Technology
Standard 3 : AACSB || Reflective Thinking
Solution: On-demand = vendor-hosted CRM system; benefit = cheaper (SaaS); limitation = unreliable vendors, modification difficult/impossible, integrating with existing software difficult/impossible, security and privacy
Mobile = CRM through mobile devices; benefit = interact with customers anywhere at any time; limitation = small screens and internet isn’t everywhere (limitation not in book)
Open-source = source code available; benefit = free, lots of applications, easy to customize, updates and bug fixes quickly available; limitation = quality control, no central authority for overseeing quality (depend on volunteers), must have same IT platform in place as the one on which the open-source CRM system was developed
Social = social media to get customers involved in collaborative conversations; benefit = getting customers involved and meet customer needs quickly and unexpectedly (Morton’s Steakhouse example); limitation = customers can say bad things (limitation not in book)
Real-time = organizations are able to respond to customer product searches, requests, complaints, comments, ratings, reviews, and recommendations in near real-time; benefit = meet customer needs quickly and efficiently (Southwest Airlines example); limitation = privacy (limitation not in book)
170) List and describe the five basic components of SCM. Explain how a company like Amazon may have used these components.
Difficulty: Medium
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Analysis
Standard 1: AACSB || Communication
Standard 2 : AACSB || Analytic
Standard 3 : AACSB || Technology
Solution: plan (strategy for managing all resources involved in meeting customer demand – efficient delivery, quality products, low cost), source (choose suppliers – relationships with suppliers – host their products on their website and possibly in their warehouses), make (manufacturing – not really relevant), deliver (logistics, coordinating receipt of customer orders, develop a network of warehouses, select carrier to transport, create an invoicing system to receive payments – warehouses in nearly every state – close to big cities for same day or next day shipping, deals with FedEx/UPS/USPS and starting their own shipping division with their own trucks), and return (handling defective, returned, or excess products from customers – make it easy to return products)
171) Describe problems that can occur along the supply chain. What are the consequences of these problems? How can companies address these problems?
Difficulty: Medium
Section Reference 1: 11.5
Learning Objective 1: Identify popular strategies to solving different challenges of supply chains.
Bloomcode: Comprehension
Standard 1: AACSB || Communication
Standard 2 : AACSB || Technology
Solution: Problems = uncertainties in demand forecast caused by competition, price, weather, technological developments, economic conditions, customer confidence, delivery times (construction, traffic jams, quality problems); need to coordinate multiple activities, internal units, and business partners – lack of communication leads to the bullwhip effect (excessive inventory that increases as you move upstream)
Consequences = poor customer service, do not deliver products or services when and where customers need them, poor quality products, high inventory costs, revenue loss
Solutions = vertical integration (purchase upstream suppliers to ensure essential supplies are always available when needed), just-in-time (JIT) inventory systems (get raw materials just before they are needed – but does not eliminate excess inventory across the supply chain), vendor managed inventory (VMI, supplier rather than retailer manages the entire inventory process for a particular product or group of products)