Deck 11: Customer Relationship Management and Supply Chain Management

Question 1

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

Answer 1

False

Question 2

Tweets can be used as customer touch points.

Answer 2

True

Question 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.

Answer 3

True

Question 4

Today, customers are becoming increasingly powerful.

Question 5

Sales force automation is a customer-facing application.

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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.

Question 14

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

Question 15

CRM systems focus on marketing to masses of people.

Question 16

Mobile CRM systems are targeting customers through their laptops.

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

The pull model is make-to-stock.

Question 24

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

Question 25

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

Question 26

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

Question 27

_____ 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

Question 28

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

Question 29

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

Question 30

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 the above - all are touch points

Question 31

Electronic data interchange is a problem for small businesses.

Question 32

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

Question 33

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

Question 34

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

Question 35

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

Question 36

The push model begins with a forecast.

Question 37

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

Question 38

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.

Question 39

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

Question 40

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

Question 41

_____ 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

Question 42

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.

Question 43

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

Question 44

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.

Question 45

_____ 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

Question 46

_____ 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

Question 47

_____ 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

Question 48

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

A) CRM
B) analytical CRM
C) operational CRM
D) collaborative CRM
E) transactional CRM

Question 49

_____ 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

Question 50

_____ 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

Question 51

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

A) CRM
B) Collaborative CRM
C) Operational CRM
D) Analytical CRM
E) Transactional CRM

Question 52

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

Question 53

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

Question 54

_____ 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

Question 55

_____ 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

Question 56

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

Question 57

_____ 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

Question 58

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

Question 59

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

Question 60

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

Question 61

_____ 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

Question 62

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

Question 63

_____ 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

Question 64

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

Question 65

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

Question 66

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

Question 67

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

Question 68

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

Question 69

Distribution or dispersal takes place in which segment of the supply chain?

A) upstream
B) internal
C) downstream
D) external
E) none of the above

Question 70

Packaging, assembly, or manufacturing take place in which segment of the supply chain?

A) upstream
B) internal
C) downstream
D) external
E) none of the above

Question 71

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

Question 72

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

Question 73

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 the above

Question 74

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

Question 75

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

Question 76

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

Question 77

_____ 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

Question 78

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

Question 79

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

Question 80

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