Enterprise Systems for Management, 2e (Motiwalla/Thompson)
Chapter 12 Customer Relationship Management
1) CRM implementations should be technology driven.
2) CRM stands for “Customer Reporting Management.”
3) CRM is a brand new concept.
4) CRM provides support for front-end customer facing functionality.
5) Organizations first implemented CRM to capture customer data for analysis.
6) Allowing customers to obtain information via Internet-based inquiries helped organizations to
scale up their call center operations.
7) CRM systems made personalized marketing and customized promotions more feasible.
8) CRM systems lack integration with the enterprise wide data collection and analysis systems.
9) The use of CRM systems has triggered some concerns about infringing on individual privacy.
10) Internet technologies are not very useful for collecting consumer data.
11) Customer tracking and profiling are key tools for effective CRM.
12) The Internet makes it easier for customers to switch vendors.
13) CRM systems are not oriented towards delivering strategic value for an organization.
14) Improving communication and reducing costs are examples of tactical benefits of a CRM
system.
15) Analytical CRM systems provide front and back-end support for sales and marketing.
16) Operational CRM systems improve the efficiency of CRM delivery and support processes.
17) Analytic CRM systems make use of sophisticated data warehousing and data mining
software.
18) Vlogs are examples of common channels for collaborative CRM systems.
19) The CRM portal helps to integrate all the different channels for interacting with the
customer.
20) A good CRM system can automate all the customer relationships.
21) The key goal of campaign management is to generate “leads.”
22) The goal of service management is to convert leads into customers.
23) The focus of market research is finding ways to increase the duration and intensity of
customer relationships.
24) A good CRM system requires a closed knowledge management loop which consolidates,
analyzes and shares the customer information.
25) Customer profiling makes it harder to have individualized contact with a customer.
26) Some of the current CRM vendors originally started off in the SCM market.
27) SFA tools help sales personnel to track sales leads and contact with customer.
28) The call center has become a common source for customers to find quick answers to
complex technical questions.
29) The growth in data being generated by web-driven business has been a driver for data mining
and analytics functionality.
30) No single CRM software package can provide all the functionality needed for a
comprehensive CRM system.
31) Typical CRM systems follow a cloud architecture.
32) A company may also choose a hosted architecture where the CRM vendor runs and
maintains the CRM applications and data on their own web site.
33) Improvements in the speed and security of the Internet have recently spurred interest and
demand for in-sourced CRM systems.
34) One key concern about hosted CRM applications is that they do occasionally experience
downtime and this can really hurt the company whose application is hosted.
35) The hardware requirements document will outline what the new CRM system capabilities
should be. So this is a crucial document in the CRM implementation.
36) Hosted CRM systems have become an attractive alternative for small and large sized firms.
37) Paying a CRM vendor to host your CRM applications is a less expensive alternative to
purchasing licenses to CRM software and running it yourself.
38) CRM project deadlines should be firm to account for the organizations ability to change and
not simply adhering to a delivery schedule set by a vendor.
39) At the beginning of a CRM implementation, management and personnel should agree on the
metrics that need to be captured by the software.
40) It is easier and more economical to implement an ERP with a CRM system.
41) CRM should not be implemented as a(n) ________ system or all at one time.
A) core
B) transactional
C) inter-organizational
D) single
42) When implementing CRM, there must be ________ not only from management but also
from individual users and departments.
A) planning
B) buy-in
C) data
D) decisions
43) Implementing a CRM system is difficult because there is/are ________ of CRM functions
scattered across a variety of different business areas.
A) vendors
B) networks
C) pieces
D) data sharing
44) Every CRM system is unique and must be ________ to the needs of the organization.
A) customized
B) processed
C) analyzed
D) reverse engineered
45) Management must decide to go with a ________ CRM solution or select a single vendor to
support all the CRM requirements.
A) expanded
B) web-enabled
C) reengineered
D) best-of-breed
46) In recent years, the CRM market is moving towards ________ vendors due to consolidation,
mergers and acquisitions among CRM software vendors.
A) improved
B) bigger
C) fewer
D) more
47) Because they collect and organize consumer data and make it easier to share it, CRM
systems have come under fire for ________ and ethical violations.
A) security
B) information
C) privacy
D) business
48) Legislation has been passed that restricts collecting data from ________ even though they
are a powerful buying segment.
A) religious groups
B) political groups
C) children
D) ethnic groups
49) Many companies have pledged not to ________ collected data to outside vendors.
A) process
B) sell
C) report
D) aggregate
50) CRM provides a(n) ________ relationship with the consumers to improve their buying
experience.
A) synchronized
B) integrated information
C) one-on-one
D) beneficial
51) The second generation of CRM systems provided a(n) ________ view of every customer
interaction with the organization.
A) planned
B) holistic
C) transactional
D) collaborative
52) CRM systems provide unique, real-time experiences to the consumers based on their
________; namely, their physical location and current needs.
A) core process
B) context
C) profile
D) situation
53) CRM systems can be categorized based upon their ________, business strategy, and
implementation perspectives.
A) functionality
B) level of data sharing
C) tactical impact
D) value chain alignment
54) The customer relationship process can be divided into the ________, support, and analytical
processes.
A) maintenance
B) marketing
C) acquisition
D) delivery
55) Successful CRM systems require the integration of people, ________ and technology.
A) consumer data
B) networks
C) best practices
D) processes
56) ________ is/are not a major component of a CRM system.
A) Market research tools
B) Sales force automation software
C) Supply chain management software
D) Support tools
57) With the increasing costs of hosting and maintaining CRM systems, many companies have
been forced to opt for a(n) ________ hosted CRM solution.
A) thin-client
B) middleware
C) component-based
D) EAI
58) CRM systems must be a part of the overall corporate strategy and must never focus on just
being a ________ solution.
A) marketing
B) data conversion
C) technology
D) tactical
59) A recent Gartner study showed that ________ percent of all CRM initiatives fail.
A) 30
B) 50
C) 75
D) 80
60) As opposed to an ERP system, CRM systems provide support for ________ functionality
such as marketing, sales, and customer service.
A) database
B) front-end
C) back-end
D) application
61) The focus of a CRM system should be always be on enhancing the ________ experience.
A) user
B) designer
C) customer
D) manager
62) CRM began in response to a changing market environment as mass marketing gave way to
focused segment marketing and finally, target marketing to a(n):
A) focus group.
B) core customers.
C) niche player.
D) individual.
63) By using technology to analyze consumer data, companies found that ________ sales to
loyal, repeat customers is much more profitable than acquiring new customers.
A) new
B) incremental
C) special
D) non-standard
64) In CRM systems, a customer file is started from an initial point of ________, whether it is a
phone call inquiry or a purchased lead.
A) networking
B) demand
C) marketing contact
D) service support
65) A holistic view of a client’s sales may reveal that the cost of marketing, selling, and servicing
the client ________ much of the profit realized by a sale.
A) produces
B) augments
C) determines
D) negates
66) Companies develop a marketing ________ of every customer by observing buying patterns
and combining this with demographic data.
A) log
B) profile
C) call center
D) CRM system
E) none of the above
67) The focus of ________ technology is on facilitating better communication between a
customer and a telephone operator.
A) log
B) marketing profile
C) call center
D) CRM system
E) none of the above
68) True CRM brings together information from all the ________ sources within an
organization.
A) software
B) hardware
C) data
D) process
E) none of the above
69) The ________ server houses the backend database and possibly retrieves information from
other database systems in the company.
A) cloud
B) database
C) client
D) web
E) none of the above
70) The CRM ________ server provides an extranet access point for external users such as
vendors.
A) cloud
B) database
C) client
D) web
E) none of the above
71) CRM systems typically process ________ information such as customer contact data and
profiles.
A) ill defined
B) random
C) incomplete
D) well structured
E) none of the above
72) Unstructured information such as documents and memos are provided to the CRM system by
________ systems.
A) knowledge management
B) cloud
C) client
D) web
E) none of the above
73) When beginning a CRM implementation, a company should focus on the ________ of the
CRM project before considering possible technology solutions.
A) cloud
B) database
C) client
D) goals
E) none of the above
74) Salesforce.com is an example of a CRM application ________ provider and offers a quicker
implementation and less expensive CRM option.
A) service
B) cloud
C) client
D) web
E) none of the above
75) CRM should be viewed as a strategic business solution and not a ________ solution.
A) cloud
B) technical
C) client
D) web
E) none of the above
76) Why is it important that CRM be customer-driven rather than technology-driven?
77) What is CRM? How has it evolved?
78) Why are some consumer advocates upset with the growth of CRM?
79) How is the focus of CRM now shifting from its tactical to its strategic impact?
80) Describe the different ways of categorizing CRM.
81) How should CRM be integrated with customer delivery processes?
82) How is CRM integrated with the processes associated with data analysis?
83) What might a typical CRM architecture look like? What factors should be taken into
consideration when designing a CRM architecture?