978-0134238241 Chapter 9 Part 3

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68) Selling a customer with a checking account a home improvement loan is an example of:

A) operational CRM.

B) direct marketing.

C) cross-selling.

D) cross-channel promotions.

E) sales force automation.

AACSB: Analytical Thinking

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

69) ________ management is an important capability for customer service processes that is

found in most major CRM software products.

A) Returns

B) Lead

C) Account

D) Events

E) Field sales

AACSB: Information Technology

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

70) Which of the following is an important capability for sales processes that is found in most

SFA modules in major CRM software products?

A) Returns management

B) Lead management

C) Channel promotions management

D) Events management

E) Campaign measurement

AACSB: Information Technology

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

71) Which of the following customer relationship management applications provides analysis of

customer data?

A) Operational CRM

B) Analytical CRM

C) Operational SCM

D) Analytical SFA

E) Operational PRM

AACSB: Information Technology

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

72) Operational CRM applications include tools for all of the following except:

A) sales force automation.

B) call center support.

C) marketing automation.

D) customer service support.

E) calculating CLTV.

AACSB: Information Technology

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

73) Which of the following tools is used to analyzing customer buying patterns?

A) CLTV

B) Analytical CRM

C) Operational CRM

D) Demand planning.

E) SFA

AACSB: Information Technology

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

74) Which metric is based on the relationship between the revenue produced by a specific

customer, the expenses incurred in acquiring and servicing that customer, and the expected life

of the relationship between the customer and the company?

A) Churn rate

B) CLTV

C) Cost per lead

D) Cost per sale

E) CRM rate

AACSB: Application of Knowledge

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

75) The measurement of the number of customers who stop using or purchasing products or

services from a company is called:

A) switching costs.

B) CRM rate.

C) CLTV.

D) switch rate.

E) churn rate.

AACSB: Application of Knowledge

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

76) ________ modules in CRM systems help sales staff increase their productivity by focusing

sales efforts on the most profitable customers, those who are good candidates for sales and

services.

A) PRM

B) SFA

C) ERM

D) CLTV

E) Just-in–time

AACSB: Information Technology

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

77) ________ CRM includes customer-facing applications such as tools for sales force

automation, call center and customer service support, and marketing automation.

A) Operational

B) Social

C) Web-based

D) Sales force

E) Analytical

AACSB: Information Technology

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

78) Data from which of the following is not used as an input by analytical CRM applications?

A) Operational CRM systems

B) Customer touch points

C) Customer lists purchased from others

D) CLTV

E) Demographic data

AACSB: Application of Knowledge

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

79) It is less expensive to sell a product to a new customer than to an existing customer.

AACSB: Application of Knowledge

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

80) All CRM packages contain modules for PRM and ERM.

AACSB: Information Technology

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

81) Major CRM application software vendors include Oracle and SAP.

AACSB: Information Technology

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

82) Cross-selling markets complementary products to customers.

AACSB: Application of Knowledge

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

83) CRM software can help organizations identify high-value customers for preferential

treatments.

AACSB: Information Technology

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

84) Operational CRM uses a customer data warehouse and tools to analyze customer data

collected from the firm’s customer touch points and from other sources.

AACSB: Information Technology

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

85) Identify and describe the two types of customer relationship management applications.

AACSB: Analytical Thinking; Written and Oral Communication

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

86) Identify five benefits of customer-relationship management systems.

AACSB: Analytical Thinking; Written and Oral Communication

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

87) You have been hired by Croydon Visiting Nurse Services, whose business processes are all

manual, paper-based processes. How might a CRM system benefit this business?

AACSB: Analytical Thinking; Written and Oral Communication

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

88) What are four questions that a good CRM system can help answer and how do firms use the

answers to those questions?

AACSB: Application of Knowledge; Written and Oral Communication

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

89) What is a PRM module? How does it differ from an ERM module?

AACSB: Application of Knowledge; Written and Oral Communication

LO: 9.3: How do customer relationship management systems help firms achieve customer

intimacy?

90) According to the case study on Unilever, over a ten-year period, Unilever reduced the

number of ERP systems it had from ________ to ________.

A) 1000; 100

B) 500; 50

C) 250; 25

D) 250; 4

E) 100; 10

AACSB: Application of Knowledge

LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise

applications taking advantage of new technologies?

91) Which of the following statements about enterprise applications is not true?

A) Enterprise applications require organizational learning.

B) Enterprise applications introduce “switching costs.”

C) Enterprise applications are based on organization-wide definitions of data.

D) Enterprise applications are best implemented when few changes in business processes are

required.

E) Open source enterprise applications are attractive to companies because of their low cost.

AACSB: Analytical Thinking

LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise

applications taking advantage of new technologies?

92) Which of the following is not an example of a next-generation enterprise application?

A) Openbravo

B) Social CRM

C) SAP Business Suite

D) Salesforce.com

E) i2 Technologies

AACSB: Application of Knowledge

LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise

applications taking advantage of new technologies?

93) Enterprise application vendors have created ________ to make their own customer

relationship management, supply chain management, and enterprise systems work closely

together with each other.

A) e-business suites

B) ERP systems

C) middleware

D) legacy systems

E) groupware

AACSB: Information Technology

LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise

applications taking advantage of new technologies?

94) Enterprise application vendors are now including ________ features such as tools for data

visualization, flexible reporting, and ad hoc analysis as part of the application.

A) ESS

B) SAP

C) on-demand

D) business intelligence

E) just-in–time

AACSB: Information Technology

LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise

applications taking advantage of new technologies?

95) According to a 2014 survey of 192 companies conducted by Panorama Consulting Solutions,

the average cost of an ERP project was:

A) $280,000.

B) $2.8 million.

C) $28 million.

D) $280 million.

E) $2.8 billion.

AACSB: Application of Knowledge

LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise

applications taking advantage of new technologies?

96) According to a 2014 survey of 192 companies conducted by Panorama Consulting Solutions,

ERP projects took about ________ to complete.

A) 1 month

B) 6 months

C) 12 months

D) 16 months

E) 24 months

AACSB: Application of Knowledge

LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise

applications taking advantage of new technologies?

97) Enterprise applications introduce switching costs.

AACSB: Application of Knowledge

LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise

applications taking advantage of new technologies?

98) Enterprise systems require fundamental changes in the way the business operates.

AACSB: Information Technology

LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise

applications taking advantage of new technologies?

99) Identify at least four benefits and four challenges of enterprise systems.

AACSB: Analytical Thinking; Written and Oral Communication

LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise

applications taking advantage of new technologies?

100) What is social CRM and how is it being used?

AACSB: Application of Knowledge; Written and Oral Communication

LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise

applications taking advantage of new technologies?