CRM and Supply Chain Test Bank Docx Ch9

Chapter 9

Customer Relationship Management and Supply Chain Management

Question Type: True/False

1) Over time, the customer relationship with vendors has become more personal.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

2) Today, customers are becoming increasingly powerful.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

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.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

4) CRM systems focus on marketing to masses of people.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

5) CRM means that a company should interact with its customers as a group.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

6) Properly designed CRM systems provide a single, enterprisewide view of each customer.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

7) In the past, customer data has been located all over the company, typically in the functional areas.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

8) Tweets can be used as customer touch points.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

9) Transactional CRM systems provide interactive communication with the customer throughout the organization.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

10) For purposes of efficiency, customer data are best stored in the functional areas of the organization.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

11) Collaborative CRM systems provide interaction with customers throughout the entire organization.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

12) Operational CRM systems support the front-office business processes which directly interact with customers.

Learning Objective: Describe the two major components of operational CRM systems, and list three applications used in each component, and provide at least one example of how businesses use each application

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Easy

13) Sales force automation is a customer-facing application.

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Easy

14) If you have visited Amazon’s Web site previously and then return, Amazon recommends other books that you might like. This is called cross-selling.

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Easy

15) Mobile CRM systems are targeting customers through their portable devices such as smart phones.

Learning Objective: Compare and contrast mobile CRM systems, on-demand CRM systems, and open-source CRM systems and identify one main advantage and one main drawback of each.

Section Reference: 9.4 Other Types of Customer Relationship Management Systems

Difficulty: Easy

16) Open-source CRM software doesn’t have as many features or functions as other DRM software.

Learning Objective: Compare and contrast mobile CRM systems, on-demand CRM systems, and open-source CRM systems and identify one main advantage and one main drawback of each..

Section Reference: 9.4 Other Types of Customer Relationship Management Systems Systems

Difficulty: Easy

17) Modern organizations are concentrating on their core competencies and on becoming more flexible and agile.

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Easy

18) Supply chain visibility is the time between the receipt of incoming goods and the dispatch of finished, outbound products.

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Easy

19) Sourcing from external suppliers occurs in the upstream portion of the supply chain.

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Easy

20) Packaging and assembly take place in the downstream portion of the supply chain.

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Easy

21) There are typically four flows in the supply chain: materials, information, returns, and financial.

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Easy

22) The goal of SCM systems is to reduce friction along the supply chain.

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems. Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Easy

23) The pull model is make-to-stock.

Section Reference: 9.6 Supply Chain Management

Difficulty: Easy

24) The push model begins with a forecast.

Section Reference: 9.6 Supply Chain Management

Difficulty: Easy

25) Whether forecasters overestimate or underestimate demand, the company still faces problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Easy

26) A major source of supply chain uncertainty is the supply forecast.

Section Reference: 9.6 Supply Chain Management

Difficulty: Easy

27) The most common solution to supply chain problems is building inventories.

Section Reference: 9.6 Supply Chain Management

Difficulty: Easy

28) Horizontal integration is a business strategy in which a company buys its suppliers.

Section Reference: 9.6 Supply Chain Management

Difficulty: Easy

29) Just-in-time inventory systems try to maximize inventories to protect against uncertainties along the supply chain.

Section Reference: 9.6 Supply Chain Management

Difficulty: Easy

30) Internet protocol data interchange is a communication standard that enables business partners to electronically exchange routine documents.

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: 9.7 Information Technology Support for Supply Chain Management

Difficulty: Easy

31) Electronic data interchange is a problem for small businesses.

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: 9.7 Information Technology Support for Supply Chain Management

Difficulty: Easy

32) The Internet-based extranet is much less costly than proprietary networks.

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: 9.7 Information Technology Support for Supply Chain Management

Difficulty: Easy

33) Google uses micro-profiling in their search results.

Learning Objective: Provide real-world applications for customer relationship management and supply chain management.

Section Reference: Opening Case

Difficulty: Medium

34) Odds of selling to existing customers = 15%, compared to the odds of selling to new customers = 50%.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: Defining Customer Relationship Management

Difficulty: Easy

35) P.F. Chang followed active Twitter accounts to make the most of the customer experience.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: IT’s About Business: An Instantaneous CRM Effort

Difficulty: Easy

36) Customer-facing and customer-touching applications both involve directly interacting with the customers to solve their problems.

Learning Objective: Describe the two major components of operational CRM systems, list three applications used in each component, and provide at least one example of how businesses use each application.

Section Reference: Operational Customer Relationship Management Systems

Difficulty: Easy

37) ELoyalty software is designed to analyze a caller’s personality.

Section Reference: IT’s About Business: Refining the Call Center

Difficulty: Easy

38) Analytical CRM systems feed data to operational CRM systems.

Learning Objective: Define analytical CRM systems, and explain how businesses use these systems.

Section Reference: Analytical Customer Relationship Management Systems

Difficulty: Easy

39) Open-source CRM has much more favorable pricing compared to on-premises CRM.

Learning Objective: Define “mobile CRM systems,” “ondemand CRM systems,” and “opensource CRM systems,” and identify one main advantage and one main drawback of each.

Section Reference: Other Types of Customer Relationship Management Systems

Difficulty: Easy

40) One of the challenges with CRM is the customer is always right and now has more power than ever with the Internet.

Learning Objective: Define “mobile CRM systems,” “ondemand CRM systems,” and “opensource CRM systems,” and identify one main advantage and one main drawback of each.

Section Reference: Other Types of Customer Relationship Management Systems

Difficulty: Easy

41) Flows in the supply chain are uni-directional.

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: Supply Chains

Difficulty: Easy

42) The pull model is the same as mass customization.

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: Supply Chain Management

Difficulty: Easy

43) The bullwhip effect can also be called hoarding.

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: Supply Chain Management

Difficulty: Medium

44) Vertical integration is the same thing as disintermediation.

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: Information Technology Support for Supply Chain Management

Difficulty: Hard

45) Cannondale focuses on a make-to-order model.

Learning Objective: Summarize the fundamental concepts and skills related to customer relationship management and supply chain management.

Section Reference: Closing Case

Difficulty: Easy

46) Haya noticed that 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 colored ties in her school colors. She can put an announcement on the school’s monitors that would display in the dining halls and student union. Haya needs to decide on her CRM strategy before she can decide on her CRM systems.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

47) Haya noticed that 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 colored ties in her school colors. 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.

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Medium

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

Learning Objective: Provide real-world applications for customer relationship management and supply chain management.

Section Reference: Opening Case: The Next Step in Customer Relationship Management

Difficulty: Hard

49) Which of the following best describes CRM?

a) A process

b) A set of technologies

c) An information system

d) A way of thinking and acting

e) A set of decisions

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Medium

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

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Medium

51) Which of the following is not a customer touch point?

a) Telephone contact

b) E-mail

c) Web sites

d) Customer visits to a store

e) None of these – all are touch points

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Medium

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

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

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

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Hard

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.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

55) _____ systems support the front-office business processes which directly interact with customers.

a) CRM

b) Collaborative CRM

c) Operational CRM

d) Analytical CRM

e) Transactional CRM

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Hard

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

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Easy

57) Which of the follow statements is false about customer interaction centers (CIC)?

a) A call center is an example of a CIC.

b) A Help Desk is an example of a CIC.

c) In outboard 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.

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Medium

58) The sales, marketing, and service functions are part of:

a) CRM

b) analytical CRM

c) operational CRM

d) collaborative CRM

e) transactional CRM

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Easy

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 centers

d) sales team meetings

e) customer interaction centers

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Easy

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

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Easy

61) _____ is the practice of marketing additional related products to customers based on a previous purchase.

a) Bundling

b) Up-selling

c) Re-selling

d) Additional selling

e) Cross-selling

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Easy

62) AT&T 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) up-selling

b) cross-selling

c) bundling

d) customer relationship management

e) customer intimacy

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Medium

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) up-selling

b) cross-selling

c) bundling

d) customer relationship management

e) customer intimacy

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Medium

64) _____ is a sales strategy where the business person will provide to customers the opportunity to purchase higher-value related products.

a) Bundling

b) Up-selling

c) Re-selling

d) Additional selling

e) Cross-selling

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Easy

65) _____ is a form of _____.

a) Up-selling, re-selling

b) Bundling, cross-selling

c) Up-selling, bundling

d) Cross-selling, re-selling

e) Re-selling, additional selling

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Medium

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

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Medium

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

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Easy

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 behavior.

d) The purpose of loyalty programs is to reward past behavior

e) Loyalty programs are a customer-touching application.

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Medium

69) _____ systems study customer behavior and perceptions to provide business intelligence.

a) CRM

b) Collaborative CRM

c) Operational CRM

d) Analytical CRM

e) Transactional CRM

Learning Objective: Define “analytical CRM systems,” and describe four purposes forwhich businesses use these systems.

Section Reference: 9.3 Analytical Customer Relationship Management Systems

Difficulty: Easy

70) _____ creates statistical models of customer behavior and the value of customer relationships over time.

a) CRM

b) Analytical CRM

c) Operational CRM

d) Collaborative CRM

e) Transactional CRM

Learning Objective: Define “analytical CRM systems,” and describe four purposes for which businesses use these systems.

Section Reference: 9.3 Analytical Customer Relationship Management Systems

Difficulty: Easy

71) _____ is a CRM system that is hosted by an external vendor in the vendor’s data center.

a) Mobile CRM

b) Analytical CRM

c) Operational CRM

d) On-demand CRM

e) Customer-facing CRM

Learning Objective: Compare and contrast mobile CRM systems, on-demand CRM systems, and open-source CRM systems. Define “mobile CRM systems,” “on demand CRM systems,” and “opensource CRM systems,” and identify one main advantage and one main drawback of each.

Section Reference: 9.4 Other Types of Customer Relationship Management Systems

Difficulty: Easy

72) Potential problems with on-demand CRM include all of the following except:

a) increases costs for the organization

b) vendor could prove unreliable

c) difficult to modify hosted software

d) may be difficult to integrate hosted software with existing software in the organization

e) giving strategic data to a vendor is risky

Learning Objective: Define “mobile CRM systems,” “on demand CRM systems,” and “open source CRM systems,” and identify one main advantage and one main drawback of each..

Section Reference: 9.4 Other Types of Customer Relationship Management Systems

Difficulty: Medium

73) The benefits of open-source CRM include all of the following except:

a) It is easy to customize

b) It is favorably 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

Learning Objective: Define “mobile CRM systems,” “on demand CRM systems,” and “open source CRM systems,” and identify one main advantage and one main drawback of each.

Section Reference: 9.4 Other Types of Customer Relationship Management Systems

Difficulty: Medium

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

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Hard

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

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Medium

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

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Easy

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

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Easy

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

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Easy

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

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Easy

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

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Easy

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

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Easy

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

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Easy

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

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Easy

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

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Easy

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

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Medium

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

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Easy

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

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Easy

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

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Easy

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

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Medium

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

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Easy

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

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Medium

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

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Medium

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

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Medium

94) When Wal-Mart sells a package of diapers, the company captures data on that sale at its point-of-sale terminal and transmits that data to the company that makes the diapers. When it is necessary, the diaper company restocks the diapers in that Wal-Mart 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

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Medium

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) Fosters collaborative relationships

e) Reduced cycle time

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: 9.7 Information Technology Support for Supply Chain Management

Difficulty: Medium

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

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: 9.7 Information Technology Support for Supply Chain Management

Difficulty: Medium

97) The primary goal of extranets is to do which of the following?

a) 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

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: 9.7 Information Technology Support for Supply Chain Management

Difficulty: Medium

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

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: 9.7 Information Technology Support for Supply Chain Management

Difficulty: Easy

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

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: 9.7 Information Technology Support for Supply Chain Management

Difficulty: Medium

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

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: 9.7 Information Technology Support for Supply Chain Management

Difficulty: Easy

101) Refer to Opening Case – The Next Step in CRM: Which of the following is false?

a) Taste profiling is used to target ads wherever a person navigates online.

b) Persuasion profiling develops strategies to advertise to individuals online..

c) People respond to the same pitch across multiple domains.

d) Persuasion profiling only works if the individual is aware of it.

e) Micro-profiling isolates people from discoveries outside their usual interests.

Learning Objective: Summarize the fundamental concepts and skills related to customer relationship management and supply chain management.

Section Reference: Opening Case: The Next Step in Customer Relationship Management

Difficulty: Medium

102) Refer to IT’s About Business 9.2– Chinatrust Philippines CRM Effort: Some of the advantages that a business can capitalize on by implementing a CRM include:

a) Help acquire and retain customers more effectively

b) Record all customers interactions

c) Sales agents can access and analyze customers’ transaction history

d) Target customers more effectively

e) All of these

Learning Objective: Provide real-world applications for customer relationship management and supply chain management.

Section Reference: IT’s About Small Business: 9.1 An instantaneous CRM effort

Difficulty: Medium

103) Refer to IT’s About Business 9.1 – An Instantaneous CRM Effort: Which of the following is true?

a) Organizations can ignore social media.

b) Organizations only need to be followed on Tweeter to be effective.

c) An organization has to act on posts about itself on Tweeter and Facebook.

d) Tweeter is the only way to monitor customer experiences

e) Organizations can put up a Facebook fan page and customers will flock to it.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: IT’s About Business: 9.2 An Instantaneous CRM Effort

Difficulty: Medium

104) Refer to IT’s About Business 9.3– Refining the Call Center: The case discusses research that indicates that pairing callers to the call center with like-minded representatives can result in benefits. Which of the following is not one of the benefits?

a) Calls will be shorter.

b) Representatives can handle more calls.

c) Customer satisfaction will improve.

d) Fewer accounts will be canceled.

e) It reduces customer fallout.

Section Reference: IT’s About Business: 9.3 Refining the Call Center

Difficulty: Medium

105) Refer to example 9.2 Harry Rosen Inc: Which of the following is a CRM feature that was used to solve a problem that Harry Rosen was facing with its customers?

a) It allowed to identify potential customers.

b) Customers are now able to use their smart phones to place orders.

c) The company is now able to identify potential customers.

d) Customers are now able to place orders online

e) It allows sales associates to look up inventory across the company’s locations in real time

Learning Objective: Define “mobile CRM systems,” “on demand CRM systems,” and “opensource CRM systems,” and identify one main advantage and one main drawback of each..

Section Reference: Example 9.2

Difficulty: Medium

106) Refer to example 9.3: Baxter Canada: Which of the following statements is true?

a) EDI is used to link to the suppliers’ materials management information systems.

b) EDI used to analyze customers.

c) XML Web services are being replaced by EDU.

d) There is only one EDI standard being used today

e) EDI uses extranets.

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: Example 9.3

Difficulty: Medium

107) Refer to Case 9.2 – Information Technology Helps Cannondale Manage Its Complex Supply Chain: A bill of materials for a product does not include which of the following?

a) Time to produce

b) Raw materials and quantity of each needed to produce

c) Assemblies and quantity of each needed to produce

d) Components and quantity of each needed to produce

e) Parts and quantity of each needed to produce.

Learning Objective: Summarize the fundamental concepts and skills related to customer relationship management and supply chain management.

Section Reference: Case 9.2: Information Technology Helps Cannondale Manage Its Complex Supply Chain

Difficulty: Medium

108) Refer to Case 9.2 – Information Technology Helps Cannondale Manage Its Complex Supply Chain: Which of the following was not one of Cannondale’s objectives when evaluating IT solutions to their manufacturing system?

a) Accurate parts flow

b) Flexibility

c) Timely reporting

d) Shared data among all involved

e) Web-based interface

Learning Objective: Summarize the fundamental concepts and skills related to customer relationship management and supply chain management.

Section Reference: Case 9.2: Information Technology Helps Cannondale Manage Its Complex Supply Chain

Difficulty: Medium

109) Haya noticed that 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 colored ties in her school colors. She can put an announcement on the school’s monitors that would display in the dining halls and student union. 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.

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Hard

110) Haya noticed that 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 colored ties in her school colors. 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 colors 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 bull whip effect.

d) Haya has an accurate demand forecast.

e) None of these

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Hard

111) Haya noticed that 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 colored ties in her school colors. 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 colors 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.

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Hard

112) Haya noticed that 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 colored ties in her school colors. 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.

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Hard

113) Haya noticed that 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 colored ties in her school colors. 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 colors 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 bull whip effect.

d) Haya has an accurate demand forecast.

e) None of these are true.

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Hard

114).____________ profiling means a company will not just suggest content you might like but will figure out how you think so that the company can determine what you will “fall for” so the company can create a better sales pitch.

a) Directed

b) Taste

c) Persuasion

d) Micro-

Learning Objective: Provide real-world applications for customer relationship management and supply chain management.

Section Reference: Opening Case

Difficulty: Medium

115) It costs __________ times more to sell to a new customer than to sell to an existing one.

a) 2

b) 4

c) 6

d) 8

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: Defining Customer Relationship Management

Difficulty: Medium

116) By increasing customer __________ rate by 5%, profits could increase by ______%.

a) acquisition, 50

b) acquisition, 85

c) retention, 50

d) retention, 85

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: Defining Customer Relationship Management

Difficulty: Medium

117) Which of the following does NOT contribute to the value of a customer?

a) Loyalty

b) Number of purchases

c) Profitability

d) Size

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: Defining Customer Relationship Management

Difficulty: Easy

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

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: Defining Customer Relationship Management

Difficulty: Easy

119) P.F. Chang’s lettuce wraps are an example of _________ branding.

a) global

b) intuitive

c) quick

d) social

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: IT’s About Business: An Instantaneous CRM Effort

Difficulty: Medium

120) Operational CRM is the component of CRM that supports the ________-office business processes.

a) back

b) front

c) inside

d) outside

Section Reference: Operational Customer Relationship Management Systems

Difficulty: Easy

121) Customer-_________ applications involve direct interaction with customers.

a) directing

b) facing

c) interacting

d) touching

Section Reference: Operational Customer Relationship Management Systems

Difficulty: Easy

122) _________ are organizations that use the CIC to create a call list for the sales team, whose members contact sales prospects.

a) Call centers

b) Customer interaction boards

c) Inbound teleservices

d) Outbound telesales

Section Reference: Operational Customer Relationship Management Systems

Difficulty: Easy

123) _______ management CRM systems are used to target sales opportunities by finding new customers or companies for future sales.

a) Contact

b) Future

c) Opportunity

d) Sales

Section Reference: Operational Customer Relationship Management Systems

Difficulty: Medium

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) Up selling

Section Reference: Operational Customer Relationship Management Systems

Difficulty: Easy

125) _________ is an example of a customer-facing application.

a) Automated e-mail response

b) FAQ

c) Loyalty program

d) SFA

Section Reference: Operational Customer Relationship Management Systems

Difficulty: Easy

126) ________-driven customers either love something or hate it.

a) Actions

b) Emotions

c) Reactions

d) Thoughts

Section Reference: IT’s About Business: Refining the Call Center

Difficulty: Medium

127) __________ CRM systems are used to create statistical models of customer behavior, 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

Learning Objective: Define analytical CRM systems, and explain how businesses use these systems.

Section Reference: Analytical Customer Relationship Management Systems

Difficulty: Easy

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

Learning Objective: Define analytical CRM systems, and explain how businesses use these systems.

Section Reference: Analytical Customer Relationship Management Systems

Difficulty: Medium

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

Learning Objective: Define analytical CRM systems, and explain how businesses use these systems.

Section Reference: Analytical Customer Relationship Management Systems

Difficulty: Medium

130) Which of the following is NOT a disadvantage of on-demand CRM?

a) Cost

b) Integration difficulty

c) Strategic advantage

d) Vendor reliability

Learning Objective: Define “mobile CRM systems,” “ondemand CRM systems,” and “opensource CRM systems,” and identify one main advantage and one main drawback of each.

Section Reference: Other Types of Customer Relationship Management Systems

Difficulty: Medium

131) ______ CRM is a CRM system that is hosted by an external vendor in the vendor’s data center.

a) On-demand

b) On-premises

c) Open-source

d) Mobile

Learning Objective: Define “mobile CRM systems,” “ondemand CRM systems,” and “opensource CRM systems,” and identify one main advantage and one main drawback of each.

Section Reference: Other Types of Customer Relationship Management Systems

Difficulty: Easy

132) Hard Rock’s Kickback Mobile system allows customers to __________.

a) tip their server automatically

b) order drinks electronically

c) request songs to play in the bar

d) pay for their food and drinks at the point of sale

Learning Objective: Define “mobile CRM systems,” “ondemand CRM systems,” and “opensource CRM systems,” and identify one main advantage and one main drawback of each.

Section Reference: IT’s About Business: Mobile CRM on a Smartphone

Difficulty: Easy

133) Distribution is an example of a ____________ component of supply chain management.

a) Downstream

b) Internal

c) Instream

d) Upstream

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: Supply Chains

Difficulty: Easy

134) A raw supplier is an example of a _______ component of supply chain management.

a) Downstream

b) Internal

c) Instream

d) Upstream

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: Supply Chains

Difficulty: Easy

135) _________ flows are all 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) Schedule

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: Supply Chains

Difficulty: Easy

136) IOSs involves ________ flows among two or more organizations.

a) Financial

b) Information

c) Material

d) Schedule

Learning Objective: Identify and discuss three popular strategies used to solve supply chain problems.

Section Reference: Supply Chain Management

Difficulty: Medium

137) Which of the following is NOT an advantage of IOSs?

a) Cost

b) Quality

c) Scope

d) Time

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: Supply Chain Management

Difficulty: Hard

138) The _________ model involves an educated guess about customer demand.

a) make-to-order

b) mass customization

c) pull

d) push

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: Supply Chain Management

Difficulty: Easy

139) The bullwhip effect results in __________.

a) deficient inventory

b) excess inventory

c) mass customization

d) mass production

Answer b

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: Supply Chain Management

Difficulty: Easy

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

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: Information Technology Support for Supply Chain Management

Difficulty: Easy

141) Vertical integration is a business strategy in which a company purchases its ______ suppliers.

a) Downstream

b) Internal

c) Instream

d) Upstream

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: Information Technology Support for Supply Chain Management

Difficulty: Easy

142) Which of the following is NOT a benefit of EDI?

a) Cost

b) Length

c) Productivity

d) Security

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: Information Technology Support for Supply Chain Management

Difficulty: Easy

143) Which of the following is NOT a limitation of EDI?

a) Cost

b) Flexibility

c) Security

d) Standards

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: Information Technology Support for Supply Chain Management

Difficulty: Easy

144) Cannondale installed a __________ system to resolve its problems.

a) CRM

b) ERP

c) FAIS

d) SCM

Learning Objective: Summarize the fundamental concepts and skills related to customer relationship management and supply chain management.

Section Reference: Closing Case

Difficulty: Easy

145) Haya noticed that 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 colored ties in her school colors. She can put an announcement on the school’s monitors that would display in the dining halls and student union. 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 web site before she begins to sell on campus.

c) She should send an Email to all students on campus.

d) She should put a flyer in every mail box on campus.

e) Actual physical interactions when customers visit her store

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Easy

146) Haya noticed that 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 colored ties in her school colors. She can put an announcement on the school’s monitors that would display in the dining halls and student union. Which of the following should Haya consider during her first month of operation?

a) A sales force automation system

b) A customer interaction center

c) Bundling

d) Campaign management

e) Purchasing profiles

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Hard

147) Haya noticed that 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 colored ties in her school colors. She can put an announcement on the school’s monitors that would display in the dining halls and student union. Which of the following should Haya focus on during her first month of operation?

a) Search/comparison capabilities on a web site

b) Personalized experiences to make a purchase on a web site

c) Customization of ties

d) FAQs

e) A loyalty program

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Medium

148) Haya noticed that 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 colored ties in her school colors. She can put an announcement on the school’s monitors that would display in the dining halls and student union. Haya begins collecting data about her customers by having them sign up for Promotional Emails at her store. She collects their names and Email address on her form. How might she use the customer data?

a) Target marketing campaigns

b) Cross-sell

c) Gain insights into her products

d) Perform customer profitability analysis

e) Marketing

Learning Objective: Define “analytical CRM systems,” and describe four purposes for which businesses use these systems..

Section Reference: 9.3 Analytical Customer Relationship Management Systems

Difficulty: Hard

149) Haya noticed that 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 colored ties in her school colors. She can put an announcement on the school’s monitors that would display in the dining halls and student union. 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-sell

c) Insights into her products

d) Customer profitability analysis

e) Marketing

Learning Objective: Define “analytical CRM systems,” and describe four purposes for which businesses use these systems.

Section Reference: 9.3 Analytical Customer Relationship Management Systems

Difficulty: Medium

Question Type: Short Answer

150) Describe the various customer touch points in any organization. Which ones are more effective for you as college students?

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Medium

151) Describe the various customer-facing applications in an organization.

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Medium

152) Describe the elements within sales force automation.

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Medium

153) Contrast operational CRM systems and analytical CRM systems.

Section Reference: 9.2 Operational Customer Relationship Management Systems, Analytical CRM

Difficulty: Medium

154) What are the problems associated with on-demand CRM?

Learning Objective: Define “mobile CRM systems,” “on demand CRM systems,” and “opensource CRM systems,” and identify one main advantage and one main drawback of each..

Section Reference: 9.4 Other Types of Customer Relationship Management Systems

Difficulty: Medium

155) Describe the reasons that so many companies think mobile CRM is the CRM system of the future.

Learning Objective: Define “mobile CRM systems,” “on demand CRM systems,” and “opensource CRM systems,” and identify one main advantage and one main drawback of each..

Section Reference: 9.4 Other Types of Customer Relationship Management Systems

Difficulty: Medium

156) Discuss the benefits of persuasion profiling

Learning Objective: Summarize the fundamental concepts and skills related to customer relationship management and supply chain management.

Section Reference: Case 9.2: Information Technology Helps Cannondale Manage Its Complex Supply Chain

Difficulty: Medium

157) Describe supply chain visibility and explain why it is important to an organization.

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Medium

158) Describe inventory velocity and explain why it is important to an organization.

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Medium

159) Describe the three flows along a supply chain.

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Medium

160) Explain what “upstream” and “downstream” are within a supply chain.

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: 9.5 Supply Chains

Difficulty: Medium

161) Differentiate between the pull model and the push model.

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Medium

162) Describe the various methods that companies use to solve problems along their supply chains.

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Medium

163) What is the bullwhip effect?

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Medium

164) Explain and contrast just-in-time inventory and vendor-managed inventory.

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Medium

Question Type: Essay

165) Describe why the customer – vendor relationship has become more impersonal.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Hard

166) Explain why the concept of a customer relationship management system became necessary.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: 9.1 Defining Customer Relationship Management

Difficulty: Medium

167) What is the rationale behind customer-touching applications? Explain four such applications.

Section Reference: 9.2 Operational Customer Relationship Management Systems

Difficulty: Hard

168) Discuss the benefits and limitations of on-demand CRM systems.

Learning Objective: Define “mobile CRM systems,” “on demand CRM systems,” and “opensource CRM systems,” and identify one main advantage and one main drawback of each..

Section Reference: 9.4 Other Types of Customer Relationship Management Systems

Difficulty: Medium

169) What are the benefits of open-source CRM?

Learning Objective: Define “mobile CRM systems,” “on demand CRM systems,” and “opensource CRM systems,” and identify one main advantage and one main drawback of each..

Section Reference: 9.4 Other Types of Customer Relationship Management Systems

Difficulty: Medium

170) Describe the supply chain of your university. Be sure to include all three segments.

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Medium

171) Describe vertical integration. How does this concept relate to supply chain management?

Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.

Section Reference: 9.6 Supply Chain Management

Difficulty: Hard

172) Define EDI and how it works.

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: 9.7 Information Technology Support for Supply Chain Management

Difficulty: Medium

173) Describe the three main types of extranets.

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: 9.7 Information Technology Support for Supply Chain Management

Difficulty: Medium

Question Type: Fill-in-the-Blank

174) Treating customers differently is a tenet of __________.

Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.

Section Reference: Defining Customer Relationship Management

Difficulty: Medium

175) A _________ is a centralized office set up to receive and transmit a large volume of requests by telephone.

Section Reference: Operational Customer Relationship Management Systems

Difficulty: Easy

176) ______ CRM provides business intelligence by analyzing customer behavior and perceptions.

Learning Objective: Define analytical CRM systems, and explain how businesses use these systems.

Section Reference: Analytical Customer Relationship Management Systems

Difficulty: Easy

177) _________ 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.

Learning Objective: Define “mobile CRM systems,” “ondemand CRM systems,” and “opensource CRM systems,” and identify one main advantage and one main drawback of each.

Section Reference: Other Types of Customer Relationship Management Systems

Difficulty: Easy

178) _____________ flows are all transfers of money, payments, and credit-related data.

Learning Objective: Define the term supply chain, and describe the three components and the three flows of a supply chain.

Section Reference: Supply Chains

Difficulty: Easy

179) ______________________ portals automate the business processes involved in upstream supply chain flows.

Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of these applications helps support supply chain management.

Section Reference: Information Technology Support for Supply Chain Management

Difficulty: Medium

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Chapter 9 CRM and Supply Chain

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Rainer Cegielski

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Chapter 7 Web 2.0 And Social Networks

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Chapter 10 Business Intelligence

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