Testbank Questions
Rainer Intro 5e
Chapter 11 Customer Relationship Management and Supply Chain Management
Question Type: True/False
1. Over time, the customer relationship with vendors has become more personal.
2. Today, customers are becoming increasingly powerful.
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.
4. CRM systems focus on marketing to masses of people.
5. CRM means that a company should interact with its customers as a group.
6. Properly designed CRM systems provide a single, enterprise wide view of each customer.
7. In the past, customer data has been located all over the company, typically in the functional areas.
8. Tweets can be used as customer touch points.
9. Transactional CRM systems provide interactive communication with the customer throughout the
organization.
10. For purposes of efficiency, customer data are best stored in the functional areas of the organization.
11. Collaborative CRM systems provide interaction with customers throughout the entire organization.
12. Operational CRM systems support the front-office business processes which directly interact with
customers.
13. Sales force automation is a customer-facing application.
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.
15. Mobile CRM systems are targeting customers through their laptops.
16. Open-source CRM software doesn’t have as many features or functions as other DRM software.
17. Modern organizations are concentrating on their core competencies and on becoming more flexible
and agile.
18. Supply chain visibility is the time between the receipt of incoming goods and the dispatch of
finished, outbound products.
19. Sourcing from external suppliers occurs in the upstream portion of the supply chain.
20. Packaging and assembly take place in the downstream portion of the supply chain.
21. There are typically four flows in the supply chain: materials, information, returns, and financial.
22. The goal of SCM systems is to reduce friction along the supply chain.
23. The pull model is make–to-stock.
24. The push model begins with a forecast.
25. Whether forecasters overestimate or underestimate demand, the company still faces problems.
26. A major source of supply chain uncertainty is the supply forecast.
27. The most common solution to supply chain problems is building inventories.
28. Horizontal integration is a business strategy in which a company buys its suppliers.
29. Just-in-time inventory systems try to maximize inventories to protect against uncertainties along the
supply chain.
30. Internet protocol data interchange is a communication standard that enables business partners to
electronically exchange routine documents.
31. Electronic data interchange is a problem for small businesses.
32. The Internet-based extranet is much less costly than proprietary networks.
33. In companies that have many separate divisions, it is most efficient for each division to maintain its
own information system.
34. Customers can only make payments using their bank or credit card apps on smart phones
35. Nutricia’s CRM system is an example of a customer facing application.
Multiple Choice
36. 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
37. 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
38. 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
39. 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
40. 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
41. 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
42. 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.
43. _____ 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
44. _____ 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
45. 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.
46. The sales, marketing, and service functions are part of:
A. CRM
B. analytical CRM
C. operational CRM
D. collaborative CRM
E. transactional CRM
47. 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
48. _____ 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
49. _____ 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
50. 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
51. 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
52. _____ 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
53. _____ 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
54. 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
55. _____ 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
56. 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.
57. _____ systems study customer behavior and perceptions to provide business intelligence.
A. CRM
B. Collaborative CRM
C. Operational CRM
D. Analytical CRM
E. Transactional CRM
58. _____ 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
59. _____ 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
60. 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
61. 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
62. 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
63. _____ 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
64. _____ 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
65. 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
66. 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
67. 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
68. 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
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
70. _____ 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
71. Returned products, recycled products, and disposal of materials or products are called:
A. reverse flows
B. returns