Chapter 11 CRM and Supply Chain Mgmt Verified Test Bank - Test Bank | Introduction to Info Systems 4th Canadian Edition by Rainer and Sanchez by Rainer Prince, Splettstoesser Hogeterp, Sanchez Rodriguez. DOCX document preview.
Chapter 11
Customer Relationship Management and Supply Chain Management
Question type: True/False
1) Over time, the customer relationship with vendors has become more personal.
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
2) Today, customers are becoming increasingly powerful.
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
3) The real problem with interacting with customers over the Web is that the company does not have an opportunity to make a good first impression in person.
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
4) CRM systems focus on marketing to masses of people.
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
5) CRM means that a company should interact with its customers as a group.
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
6) Properly designed CRM systems provide a single, enterprise-wide view of each customer.
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
7) In the past, customer data has been located all over the company, typically in the functional areas.
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
8) Tweets can be used as customer touch points.
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
9) Transactional CRM systems provide interactive communication with the customer throughout the organization.
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
10) For purposes of efficiency, customer data are best stored in the functional areas of the organization.
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
11) Collaborative CRM systems provide interaction with customers throughout the entire organization.
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
12) Operational CRM systems support the front-office business processes that directly interact with customers.
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
13) Sales force automation is a customer-facing application.
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
14) If you have visited Amazon’s website previously and then return, Amazon recommends other books that you might like. This is called cross-selling.
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
15) Mobile CRM systems are targeting customers through their portable devices such as smart phones.
Difficulty: Easy
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
16) Open-source CRM software doesn’t have as many features or functions as other DRM software.
Difficulty: Easy
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
17) Modern organizations are concentrating on their core competencies and on becoming more flexible and agile.
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
18) Supply chain visibility is the time between the receipt of incoming goods and the dispatch of finished, outbound products.
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
19) Sourcing from external suppliers occurs in the upstream portion of the supply chain.
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
20) Packaging and assembly take place in the downstream portion of the supply chain.
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
21) There are typically four flows in the supply chain: materials, information, returns, and financial.
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
22) The goal of SCM systems is to reduce friction along the supply chain.
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
23) The pull model is make-to-stock.
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
24) The push model begins with a forecast.
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
25) Whether forecasters overestimate or underestimate demand, the company still faces problems.
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
26) A major source of supply chain uncertainty is the supply forecast.
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
27) The most common solution to supply chain problems is building inventories.
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
28) Horizontal integration is a business strategy in which a company buys its suppliers.
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
29) Just-in-time inventory systems try to maximize inventories to protect against uncertainties along the supply chain.
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
30) Internet protocol data interchange is a communication standard that enables business partners to electronically exchange routine documents.
Difficulty: Easy
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
31) Electronic data interchange is a problem for small businesses.
Difficulty: Easy
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
32) The Internet-based extranet is much less costly than proprietary networks.
Difficulty: Easy
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
33) Distribution portals are for downstream customers in a supply chain.
Difficulty: Easy
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
34) Open-source CRM systems are also known as utility computing.
Difficulty: Easy
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
35) Analytical CRM systems support OLAP.
Difficulty: Easy
Learning Objective: Discuss the benefits of analytical CRM systems to businesses.
Section Reference: 11.3 Analytical Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
36) Customer-facing and customer-touching applications both involve directly interacting with the customers to solve their problems.
Difficulty: Easy
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
37) The push model is the same as make-to-order.
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
38) Analytical CRM systems feed data to operational CRM systems.
Difficulty: Easy
Learning Objective: Discuss the benefits of analytical CRM systems to businesses.
Section Reference: 11.3 Analytical Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
39) Open-source CRM has much more favourable pricing compared to on-premises CRM.
Difficulty: Easy
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
40) One of the challenges with CRM is that the customer is always right and now has more power than ever with the Internet.
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
41) Flows in the supply chain are uni-directional.
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
42) The pull model is the same as mass customization.
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
43) The bullwhip effect can also be called hoarding.
Difficulty: Medium
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
44) Vertical integration is the same thing as disintermediation.
Difficulty: Hard
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
45) Dell uses a pull model.
Difficulty: Hard
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
46) Haya noticed that male college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports-themed ties as well as solid-coloured ties in her school colours. She can put an announcement on the school’s monitors that would display in the dining halls and student union lounge. Haya needs to decide on her CRM strategy before she can decide on her CRM systems.
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
47) Haya noticed that male college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports-themed ties as well as solid-coloured ties in her school colours. She can put an announcement on the school’s monitors that would display in the dining halls and student union. The supplier of Haya’s ties is downstream in her supply chain.
Difficulty: Medium
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Comprehension
Question type: Multiple Choice
48) Over time, the customer relationship with vendors has become more impersonal for all of the following reasons except:
a) People move from farms to cities.
b) Consumers became mobile.
c) Supermarkets and department stores proliferated.
d) Customer relationship management systems were developed.
e) The Internet grew rapidly.
Difficulty: Hard
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
49) Which of the following best describes CRM?
a) It’s a process.
b) It’s a set of technologies.
c) It’s an information system.
d) It’s a way of thinking and acting.
e) It’s a set of decisions.
Difficulty: Medium
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
50) Which of the following is an important enabler of CRM?
a) Recognizing that there are many customer touch points
b) Recognizing the necessity of treating all customers the same
c) Recognizing the need for sophisticated CRM information systems
d) Recognizing the need for sophisticated customer databases
e) Recognizing the need for a data warehouse
Difficulty: Medium
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
51) Which of the following is not a customer touch point?
a) Telephone contact
b) E-mail
c) Websites
d) Customer visits to a store
e) None of these—all are touch points
Difficulty: Medium
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
52) The complete data on a customer is called:
a) a profile
b) a record
c) a 360-degree view
d) a file
e) a consolidated customer map
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
53) Which of the following is the most important enabler of the 360-degree view of the customer across an organization?
a) The organization’s database
b) The organization’s data warehouse
c) The organization’s CRM systems
d) The organization’s collaborative CRM systems
e) The organization’s analytical CRM systems
Difficulty: Hard
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
54) Which of the following statements is false?
a) Data consolidation and 360-degree view mean the same thing.
b) Data about customers in various functional areas was difficult to share.
c) Collaborative CRM systems enable customers to provide direct feedback to the organization.
d) CRM systems use a data warehouse to make all customer data available to every unit of the business.
e) Organizations can use blogs for customer input about their products and services.
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
55) ___________ systems support the front-office business processes that directly interact with customers.
a) CRM
b) Collaborative CRM
c) Operational CRM
d) Analytical CRM
e) Transactional CRM
Difficulty: Hard
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
56) __________ includes those areas where customers directly interact with the company.
a) CRM
b) Analytical CRM
c) Customer-facing CRM
d) Customer-touching CRM
e) Transactional CRM
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
57) Which of the follow statements is false about customer interaction centres (CIC)?
a) A call centre is an example of a CIC.
b) A Help Desk is an example of a CIC.
c) In outbound telesales the sales person contacts the customer.
d) In inboard telesales the customer calls the CIC.
e) Live chat provides an advantage over telephone conversations.
Difficulty: Medium
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
58) The sales, marketing, and service functions are part of:
a) CRM
b) analytical CRM
c) operational CRM
d) collaborative CRM
e) transactional CRM
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
59) In ___________, company representatives use multiple communication channels to support the communications preferences of customers.
a) telesales rooms
b) group decision support rooms
c) videoconferencing centres
d) sales team meetings
e) customer interaction centres
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
60) ____________ is the component of an operational CRM system that automatically records all the aspects in a sales transaction process.
a) Inbound telesales
b) Outbound telesales
c) Sales team efforts
d) Sales force automation
e) The customer help desk
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
61) ________ is the practice of marketing additional related products to customers based on a previous purchase.
a) Bundling
b) Upselling
c) Re-selling
d) Additional selling
e) Cross-selling
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
62) Rogers Communications sells telephone services that include local and long-distance service, voice mail service, caller ID, and digital subscriber line access to the Internet. This is a form of:
a) upselling
b) cross-selling
c) bundling
d) customer relationship management
e) customer intimacy
Difficulty: Medium
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
63) You are in the market for a small economy car. The salesperson has you drive the economy car and then hands you the keys to a mid-size car of the same brand for you to drive. The salesperson is engaged in:
a) upselling
b) cross-selling
c) bundling
d) customer relationship management
e) customer intimacy
Difficulty: Medium
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
64) _________ is a sales strategy where the business person will provide to customers the opportunity to purchase higher-value related products.
a) Bundling
b) Upselling
c) Re-selling
d) Additional selling
e) Cross-selling
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
65) ______ is a form of _______.
a) Upselling, re-selling
b) Bundling, cross-selling
c) Upselling, bundling
d) Cross-selling, re-selling
e) Re-selling, additional selling
Difficulty: Medium
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
66) A check-in kiosk at the airport would be what type of CRM application?
a) Inbound telesales
b) Customer touching
c) Outbound telesales
d) Sales
e) Customer facing
Difficulty: Medium
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
67) ___________ are simple tools for answering repetitive customer questions.
a) Personalized web pages
b) Customized products and services
c) Frequently asked questions
d) E-mail systems
e) Automated response systems
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
68) Which of the following statements about loyalty programs is false?
a) Loyalty programs work when there is a high frequency of repeat purchases.
b) Loyalty programs work when there is not personal customization.
c) The purpose of loyalty programs is to influence future behaviour.
d) The purpose of loyalty programs is to reward past behaviour.
e) Loyalty programs are a customer-touching application.
Difficulty: Medium
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
69) __________ systems study customer behaviour and perceptions to provide business intelligence.
a) CRM
b) Collaborative CRM
c) Operational CRM
d) Analytical CRM
e) Transactional CRM
Difficulty: Easy
Learning Objective: Discuss the benefits of analytical CRM systems to businesses.
Section Reference: 11.3 Analytical Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
70) ________ creates statistical models of customer behaviour and the value of customer relationships over time.
a) CRM
b) Analytical CRM
c) Operational CRM
d) Collaborative CRM
e) Transactional CRM
Difficulty: Easy
Learning Objective: Discuss the benefits of analytical CRM systems to businesses.
Section Reference: 11.3 Analytical Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
71) _________ is a CRM system that is hosted by an external vendor in the vendor’s data centre.
a) Mobile CRM
b) Analytical CRM
c) Operational CRM
d) On-demand CRM
e) Customer-facing CRM
Difficulty: Easy
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
72) Potential problems with on-demand CRM include all of the following except:
a) It increases costs for the organization.
b) The vendor could prove unreliable.
c) It’s difficult to modify hosted software.
d) It may be difficult to integrate hosted software with existing software in the organization.
e) Giving strategic data to a vendor is risky.
Difficulty: Medium
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
73) The benefits of open-source CRM include all of the following except:
a) It is easy to customize.
b) It is favourably priced.
c) It has more functionality than in-house CRM systems.
d) Updates and error fixes occur rapidly.
e) It has extensive support information available.
Difficulty: Medium
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
74) Trends that have led to the supply chain concept include all of the following except:
a) Modern organizations are focusing on their core competencies.
b) Modern organizations are concentrating on becoming more agile and flexible.
c) Modern organizations are buying their suppliers in order to have more transparency along the supply chain.
d) Modern organizations are relying on other companies to supply necessary goods and services.
e) Modern organizations are relying on an increasing number of suppliers.
Difficulty: Hard
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Comprehension
75) _____________ is the ability for all organizations in 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.
a) Supply chain visibility
b) Horizontal integration
c) Vertical integration
d) Supply chain intelligence
e) Supply chain integration
Difficulty: Medium
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Comprehension
76) _______ is the time between the receipt of incoming goods and the dispatch of finished, outbound products.
a) Inventory turnover
b) Inventory velocity
c) Inventory speed
d) Inventory time
e) Inventory production
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
77) A(n) ___________ refers to the flow of materials, information, money, and services from raw material suppliers through factories and warehouses, to the end customers.
a) demand chain
b) business process
c) manufacturing process
d) supply chain
e) enterprise resource process
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
78) A company’s suppliers, suppliers’ suppliers, and the processes for managing them is the:
a) suppliers’ chain
b) external supply chain
c) upstream portion of the supply chain
d) downstream portion of the supply chain
e) entire supply chain
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
79) Packaging, assembly, or manufacturing take place in which segment of the supply chain?
a) Upstream
b) Internal
c) Downstream
d) External
e) None of these
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
80) A company’s organization and processes for distributing and delivering products to its final customers is the:
a) suppliers’ chain
b) external supply chain
c) upstream portion of the supply chain
d) downstream portion of the supply chain
e) entire supply chain
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
81) Distribution or dispersal takes place in which segment of the supply chain?
a) Upstream
b) Internal
c) Downstream
d) External
e) None of these
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
82) ___________ are the physical products, raw materials, and supplies that flow along a supply chain.
a) Reverse flows
b) Reverse logistics
c) Material flows
d) Information flows
e) Financial flows
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
83) Returned products, recycled products, and disposal of materials or products are called:
a) reverse flows
b) returns
c) material flows
d) information flows
e) financial flows
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
84) __________ involve money transfers, payments, credit card information and authorization, payment schedules, e-payments, and credit-related data.
a) Reverse flows
b) Reverse logistics
c) Material flows
d) Information flows
e) Financial flows
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
85) Which of the following is not a goal of supply chain management?
a) To reduce uncertainty along the supply chain
b) To decrease inventory levels
c) To increase cycle time
d) To improve customer service
e) To improve business processes
Difficulty: Medium
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
86) Interorganizational information systems result in all of the following except:
a) reduced costs of routine business transactions
b) improved quality of information flow
c) reduced errors
d) increased cycle time
e) eliminated paper processing
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
87) In the _________, the production process begins with a forecast.
a) supply chain model
b) inventory model
c) pull model
d) vertical integration model
e) push model
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
88) In the _________, the production process begins with a customer order.
a) supply chain model
b) inventory model
c) pull model
d) vertical integration model
e) push model
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
89) Which of the following is not a problem along the supply chain?
a) Poor customer service
b) High inventory costs
c) Loss of revenues
d) Decreased cycle times
e) Extra cost of expediting shipments
Difficulty: Medium
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
90) The __________ is erratic shifts in orders up and down the supply chain.
a) demand forecast effect
b) supply forecast effect
c) bullwhip effect
d) inventory effect
e) customer coordination effect
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
91) The bullwhip effect comes from which of the following?
a) Poor demand forecast
b) Price fluctuations
c) Order batching
d) Rationing within the supply chain
e) All of these
Difficulty: Medium
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
92) Which of the following is not responsible for the bullwhip effect?
a) Poor demand forecast
b) Price fluctuations
c) Order batching
d) Rationing within the supply chain
e) Poor supply forecast
Difficulty: Medium
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
93) Which of the following is not a possible solution to supply chain problems?
a) Vertical integration
b) Building inventories
c) Information sharing
d) Horizontal integration
e) The bullwhip effect
Difficulty: Medium
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
94) When Walmart sells a package of diapers, the company captures data on that sale at its point-of-sale terminal and transmits the data to the company that makes the diapers. When it is necessary, the diaper company restocks the diapers in that Walmart store. This process is called:
a) Supply chain management
b) Demand chain management
c) Vendor-managed inventory
d) Enterprise resource planning inventory
e) Just-in-time inventory
Difficulty: Medium
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
95) Which of the following is not a benefit of EDI?
a) Data entry errors are minimized.
b) Length of messages is longer.
c) Messages are secured.
d) Collaborative relationships are fostered.
e) Cycle time is reduced.
Difficulty: Medium
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
96) Which of the following is not a limitation of EDI?
a) It is inflexible.
b) Business processes may have to be restructured.
c) It is expensive, but ongoing operating costs are low.
d) Multiple EDI standards exist.
e) It is difficult to make quick changes.
Difficulty: Medium
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
97) The primary goal of extranets is to do which of the following?
a) To foster collaboration between and among business partners
b) To provide security for corporate intranets
c) To provide effective communications inside corporate intranets
d) To enable corporate employees to view inventory information for their companies
e) To enable business partners to better plan mergers and acquisitions
Difficulty: Medium
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
98) Extranets use __________ technology to make communication over the Internet more secure.
a) telepresence
b) anti-malware
c) virtual private network
d) voice-over IP
e) videoconferencing
Difficulty: Easy
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
99) The FedEx extranet that allows customers to track the status of a package is an example of which type of extranet?
a) A company and its dealers, customers, and/or suppliers
b) An industry’s extranet
c) Joint venture
d) B2B exchange
e) B2C exchange
Difficulty: Medium
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
100) _________ portals automate the business processes involved in purchasing products between a single buyer and multiple suppliers.
a) Distribution
b) Corporate
c) Affiliate
d) Intranet
e) Procurement
Difficulty: Easy
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
101) India’s automotive supply chain issues were resolved with the implementation of ________.
a) a portal
b) an extranet
c) JIT
d) VMI
Difficulty: Easy
Learning Objective: Explain the utility of each of the three major technologies that support supply chain
Section Reference: IT’s About Business 11.7: India’s New Automotive Supply Chain Extranet
AACSB: Information Technology
Bloomcode: Knowledge
102) India’s ___________ paid for the supply chain extranet.
a) customer
b) government
c) OEMs
d) suppliers
Difficulty: Easy
Learning Objective: Explain the utility of each of the three major technologies that support supply chain
Section Reference: IT’s About Business 11.7: India’s New Automotive Supply Chain Extranet
AACSB: Information Technology
Bloomcode: Knowledge
103) The main benefit of India’s new automotive supply chain extranet is _______.
a) cost
b) customer intimacy
c) efficiency
d) security
Difficulty: Easy
Learning Objective: Explain the utility of each of the three major technologies that support supply chain
Section Reference: IT’s About Business 11.7: India’s New Automotive Supply Chain Extranet
AACSB: Information Technology
Bloomcode: Knowledge
104) Super Retail Group addressed the issues resulting from its growth in sales volume and brand strength by implementing __________.
a) a CRM system
b) an SCM system
c) CIC
d) EDI
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: Case 11.2 Super Retail Group Consolidates Demand Forecasting and Replenishment
AACSB: Information Technology
Bloomcode: Knowledge
105) Super Retail Group used a ________ approach to system implementation.
a) direct
b) parallel
c) phased
d) pilot
Difficulty: Hard
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: Case 11.2 Super Retail Group Consolidates Demand Forecasting and Replenishment
AACSB: Information Technology
Bloomcode: Knowledge
106) Which of the following is not a benefit of the SCM system Super Retail Group implemented?
a) Inventory reductions
b) Scalability
c) Supplier lock-in
d) Reliability
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: Case 11.2 Super Retail Group Consolidates Demand Forecasting and Replenishment
AACSB: Information Technology
Bloomcode: Knowledge
107) Which of the following is a not an e-commerce challenge for Crate & Barrel?
a) Information demands
b) Price transparency
c) Purchasing ability
d) Service expectations
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: IT’s About Business 11.6: Crate & Barrel Improves Its Supply Chain Visibility
AACSB: Information Technology
Bloomcode: Knowledge
108) Which of the following is an e-commerce opportunity for Crate & Barrel?
a) Information demands
b) Price transparency
c) Purchasing ability
d) Service expectations
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: IT’s About Business 11.6: Crate & Barrel Improves Its Supply Chain Visibility
AACSB: Information Technology
Bloomcode: Knowledge
109) Haya noticed that male college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports-themed ties as well as solid-coloured ties in her school colours. She can put an announcement on the school’s monitors that would display in the dining halls and student union lounge. Which of the following is true about Haya’s supply chain?
a) Haya’s supplier is downstream in her supply chain.
b) Haya’s customers are upstream in her supply chain.
c) If a customer returns a tie, that is known as reverse logistics.
d) Haya has no information flows.
e) Haya’s supplier is the only other link in her supply chain.
Difficulty: Hard
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Comprehension
110) Haya noticed that male college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports-themed ties as well as solid-coloured ties in her school colours. She can put an announcement on the school’s monitors that would display in the dining halls and student union lounge. Haya orders 40 ties in each of the school colours and 10 in each of four sports. Which of the following is true about Haya’s supply chain?
a) Haya is using a push model.
b) Haya is using a pull model.
c) Haya is experiencing the bullwhip effect.
d) Haya has an accurate demand forecast.
e) None of these
Difficulty: Hard
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
111) Haya noticed that male college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports-themed ties as well as solid-coloured ties in her school colours. She can put an announcement on the school’s monitors that would display in the dining halls and student union lounge. Haya orders 40 ties in each of the school colours and 10 in each of four sports. Which of the following is true about Haya’s supply chain?
a) Haya is using a just-in-time inventory system.
b) Haya is using a vendor-managed inventory.
c) Haya is building inventories.
d) Haya has vertical integration with her upstream supplier.
e) Haya is using a pull model.
Difficulty: Hard
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
112) Haya noticed that male college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports-themed ties as well as solid-coloured ties in her school colours. She can put an announcement on the school’s monitors that would display in the dining halls and student union. Haya knows she needs to manage her relationship with her supplier. Which of the following is true?
a) Haya should invest in EDI software.
b) Haya can use the supplier’s intranet to order.
c) Haya should give the supplier access to her VPN.
d) Haya can use the supplier’s procurement portal to order.
e) Haya can use the supplier’s extranet to check on her order.
Difficulty: Hard
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
113) Haya noticed that male college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports-themed ties as well as solid-coloured ties in her school colours. She can put an announcement on the school’s monitors that would display in the dining halls and student union. Haya orders 40 ties in each of the school colours and 10 in each of four sports. She almost instantly sold out of all the sport themed ties. She decides to approach each of the sports teams on campus to see if they would be willing to buy ties “in bulk.” Which of the following is true about Haya’s supply chain?
a) Haya is using a push model.
b) Haya is using a pull model.
c) Haya is experiencing the bullwhip effect.
d) Haya has an accurate demand forecast.
e) None of these are true.
Difficulty: Hard
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
114) Supply chain visibility enhances supply chain _________.
a) cost
b) e-commerce
c) flexibility
d) globalization
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: IT’s About Business 11.6: Crate & Barrel Improves Its Supply Chain Visibility
AACSB: Information Technology
Bloomcode: Knowledge
115) Which of the following is not a reason Crate & Barrel implemented an SCM system?
a) Better reporting
b) Cost reductions
c) Globalization
d) Visibility
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: IT’s About Business 11.6: Crate & Barrel Improves Its Supply Chain Visibility
AACSB: Information Technology
Bloomcode: Knowledge
116) Which of the following is not a benefit of EDI?
a) Cost
b) Length
c) Productivity
d) Security
Difficulty: Easy
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
117) Which of the following does not contribute to the value of a customer?
a) Loyalty
b) Number of purchases
c) Profitability
d) Size
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
118) _____________ is used to get rid of customer information silos within the organization.
a) Collaborative CRM system
b) Customer relationship management
c) Data consolidation
d) Operational CRM system
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
119) In the ______________ component of SCM, the organization should come up with a strategy for managing all the resources that go toward meeting customer demand for the product or service.
a) deliver
b) make
c) plan
d) source
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
120) Operational CRM is the component of CRM that supports the ________-office business processes.
a) back
b) front
c) inside
d) outside
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
121) Customer-_________ applications involve direct interaction with customers.
a) directing
b) facing
c) interacting
d) touching
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
122) _________ are organizations that use the CIC to create a call list for the sales team, whose members contact sales prospects.
a) Call centres
b) Customer interaction boards
c) Inbound teleservices
d) Outbound telesales
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
123) SCM helps address which of Porter’s Five Forces?
a) Buyer power
b) Rivalry
c) Supplier power
d) Threat of substitutes
Difficulty: Medium
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
124) __________ is a sales strategy in which the sales person will provide customers the opportunity to purchase higher-value related products or services as opposed to, or along with, the customer’s initial product or service selection.
a) Bundling
b) Cross-selling
c) Personalization
d) Upselling
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
125) _________ is an example of a customer-facing application.
a) Automated e-mail response
b) FAQ
c) Loyalty program
d) SFA
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
126) You order a pair of shoes online, but they don’t fit. You send them back. This is an example of a(n) _________ transaction.
a) downstream
b) internal
c) intraorganizational
d) upstream
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
127) __________ CRM systems are used to create statistical models of customer behaviour, to determine the value of customer relationships over time, and to create forecasts about acquiring, retaining, and losing customers.
a) Analytical
b) Collaborative
c) Operational
d) Statistical
Difficulty: Easy
Learning Objective: Discuss the benefits of analytical CRM systems to businesses.
Section Reference: 11.3 Analytical Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
128) Which of the following is not an example of an analytical CRM system?
a) Business intelligence
b) Campaign management
c) Data mining
d) OLAP
Difficulty: Medium
Learning Objective: Discuss the benefits of analytical CRM systems to businesses.
Section Reference: 11.3 Analytical Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
129) Which of the following is an example of an analytical CRM system?
a) Campaign management
b) Data mining
c) Loyalty program
d) Personalized web page
Difficulty: Medium
Learning Objective: Discuss the benefits of analytical CRM systems to businesses.
Section Reference: 11.3 Analytical Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
130) Which of the following is not a disadvantage of on-demand CRM?
a) Cost
b) Integration difficulty
c) Strategic advantage
d) Vendor reliability
Difficulty: Medium
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
131) ________ CRM is a CRM system that is hosted by an external vendor in the vendor’s data centre.
a) On-demand
b) On-premises
c) Open-source
d) Mobile
Difficulty: Easy
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
132) Vertical integration is a business strategy in which a company purchases its ______ suppliers.
a) downstream
b) internal
c) instream
d) upstream
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
133) Distribution is an example of a(n) ___________ component of supply chain management.
a) downstream
b) internal
c) instream
d) upstream
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
134) A raw supplier is an example of a(n) _______ component of supply chain management.
a) downstream
b) internal
c) instream
d) upstream
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
135) _________ flows are all data related to demand, shipments, orders, returns, and schedules as well as to changes in any of these data.
a) Financial
b) Information
c) Material
d) Schedule
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
136) IOSs involves ________ flows among two or more organizations.
a) financial
b) information
c) material
d) schedule
Difficulty: Medium
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
137) Which of the following is not an advantage of IOSs?
a) Cost
b) Quality
c) Scope
d) Time
Difficulty: Hard
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
138) The _________ model involves an educated guess about customer demand.
a) make-to-order
b) mass customization
c) pull
d) push
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
139) The bullwhip effect results in __________.
a) deficient inventory
b) excess inventory
c) mass customization
d) mass production
Answer b
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
140) ___________ is an inventory strategy where the supplier monitors inventory and then replenishes the products when needed.
a) Bundling
b) Just-in-time
c) Vendor-managed inventory
d) Vertical integration
Difficulty: Easy
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
141) Which of the following is not a limitation of EDI?
a) Cost
b) Flexibility
c) Security
d) Standards
Difficulty: Easy
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Knowledge
142) Haya noticed that male college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports-themed ties as well as solid-coloured ties in her school colours. She can put an announcement on the school’s monitors that would display in the dining halls and student union lounge. Which of the following customer touch points will give Haya the most information after her first weekend of selling?
a) Communication she sends via smart phones
b) She should build a website before she begins to sell on campus.
c) She should send an e-mail to all students on campus.
d) She should put a flyer in every mailbox on campus.
e) Actual physical interactions when customers visit her store
Difficulty: Easy
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Knowledge
143) Haya noticed that male college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports-themed ties as well as solid-coloured ties in her school colours. She can put an announcement on the school’s monitors that would display in the dining halls and student union lounge. Which of the following should Haya consider during her first month of operation?
a) A sales force automation system
b) A customer interaction centre
c) Bundling
d) Campaign management
e) Purchasing profiles
Difficulty: Hard
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
144) Haya noticed that male college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports-themed ties as well as solid-coloured ties in her school colours. She can put an announcement on the school’s monitors that would display in the dining halls and student union lounge. Which of the following should Haya focus on during her first month of operation?
a) Search/comparison capabilities on a website
b) Personalized experiences to make a purchase on a website
c) Customization of ties
d) FAQs
e) A loyalty program
Difficulty: Medium
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
145) Haya noticed that male college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports-themed ties as well as solid-coloured ties in her school colours. She can put an announcement on the school’s monitors that would display in the dining halls and student union lounge. Haya begins collecting data about her customers by having them sign up for promotional e-mails at her store. She collects their names and e-mail address on her form. How might she use the customer data?
a) For target marketing campaigns
b) To cross-sell
c) To gain insights into her products
d) To perform customer profitability analysis
e) For marketing
Difficulty: Hard
Learning Objective: Discuss the benefits of analytical CRM systems to businesses.
Section Reference: 11.3 Analytical Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
146) Haya noticed that male college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports-themed ties as well as solid-coloured ties in her school colours. She can put an announcement on the school’s monitors that would display in the dining halls and student union lounge. Haya begins to notice that her sports ties are selling really well. Which of the following should be her next step?
a) Target marketing campaigns
b) Cross-selling
c) Insights into her products
d) Customer profitability analysis
e) Marketing
Difficulty: Medium
Learning Objective: Discuss the benefits of analytical CRM systems to businesses.
Section Reference: 11.3 Analytical Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
Question type: Short Answer
147) Describe the various customer touch points in any organization. Which ones are more effective for you as college students?
Difficulty: Medium
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
148) Describe the various customer-facing applications in an organization.
Difficulty: Medium
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
149) Describe the elements within sales force automation.
Difficulty: Medium
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
150) Contrast operational CRM systems and analytical CRM systems.
Difficulty: Medium
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
151) What are the problems associated with on-demand CRM?
Difficulty: Medium
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
152) Describe the reasons that so many companies think mobile CRM is the CRM system of the future.
Difficulty: Medium
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
153) List and describe the three systems that provide support for IOSs and SCM systems.
Difficulty: Easy
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
154) Describe supply chain visibility and explain why it is important to an organization.
Difficulty: Medium
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Comprehension
155) Describe inventory velocity and explain why it is important to an organization.
Difficulty: Medium
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Comprehension
156) Describe the three flows along a supply chain.
Difficulty: Medium
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Comprehension
157) Explain what “upstream” and “downstream” are within a supply chain.
Difficulty: Medium
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Comprehension
158) Differentiate between the pull model and the push model.
Difficulty: Medium
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
159) Describe the various methods that companies use to solve problems along their supply chains.
Difficulty: Medium
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
160) What is the bullwhip effect?
Difficulty: Medium
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
161) Explain and contrast just-in-time inventory and vendor-managed inventory.
Difficulty: Medium
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
Question type: Essay
162) Describe why the customer–vendor relationship has become more impersonal.
Difficulty: Hard
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
163) Explain why the concept of a customer relationship management system became necessary.
Difficulty: Medium
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM.
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
164) What is the rationale behind customer-touching applications? Explain four such applications.
Difficulty: Hard
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Comprehension
165) Discuss the benefits and limitations of on-demand CRM systems.
Difficulty: Medium
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
166) What are the benefits of open-source CRM?
Difficulty: Medium
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
167) Describe the supply chain of your university. Be sure to include all three segments.
Difficulty: Medium
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Comprehension
168) Describe vertical integration. How does this concept relate to supply chain management?
Difficulty: Hard
Learning Objective: Identify popular strategies to solving different challenges of supply chains.
Section Reference: 11.6 Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
169) Define EDI and how it works.
Difficulty: Medium
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
170) Describe the three main types of extranets.
Difficulty: Medium
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
Question type: Fill-in-the-Blank
171) Treating customers differently is a tenet of __________.
Difficulty: Medium
Learning Objective: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM
Section Reference: 11.1 Defining Customer Relationship Management
AACSB: Information Technology
Bloomcode: Comprehension
172) A _________ is a centralized office set up to receive and transmit a large volume of requests by telephone.
Difficulty: Easy
Learning Objective: Describe how businesses might use applications of each of the two major components of operational CRM systems.
Section Reference: 11.2 Operational Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
173) ______ CRM provides business intelligence by analyzing customer behaviour and perceptions.
Difficulty: Easy
Learning Objective: Discuss the benefits of analytical CRM systems to businesses.
Section Reference: 11.3 Analytical Customer Relationship Management Systems
AACSB: Information Technology
Bloomcode: Knowledge
174) _________ CRM is an interactive CRM system that enables an organization to conduct communications related to sales, marketing, and customer service activities though a mobile medium for the purpose of building and maintaining relationships with its customers.
Difficulty: Easy
Learning Objective: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems.
Section Reference: 11.4 Other Types of Customer Relationship Management
AACSB: Information technology
Bloomcode: Knowledge
175) _____________ flows are all transfers of money, payments, and credit-related data.
Difficulty: Easy
Learning Objective: Describe the three components and the three flows of a supply chain.
Section Reference: 11.5 Supply Chains
AACSB: Information Technology
Bloomcode: Knowledge
176) ______________ portals automate the business processes involved in upstream supply chain flows.
Difficulty: Medium
Learning Objective: Explain the utility of each of the three major technologies that support supply chain management.
Section Reference: 11.7 Information Technology Support for Supply Chain Management
AACSB: Information Technology
Bloomcode: Comprehension
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