MKT 411 Exam 4

T/F The three inputs for calculating Customer Lifetime Value are Average Annual Sales, Expected Lifetime and Forecasted Profits.

False

The global process integration software market is expected to: a. Grow by about $100 billion from 2017 to 2021 b. Double by the end of 2018 c. Decrease slightly by the end of 2017 d. Remain constant through 2018

a. Grow by about $100 billion from 2017 to 2021

The World Trade Organization (WTO) is critical to the facility location decision process because of their impact on: a. Tariffs b. Innovation c. Southeast Asian Nations d. Relationship marketing

a. Tariffs

Security activities such as; Use of security badges and guards, conducting background check on applicants and using antivirus software and passwords, would be classified as: a. Proactive Initiatives b. Basic Initiatives c. Advanced Initiatives d. Reactive Initiatives

b. Basic Initiatives

Interconnected companies and institutions from a particular field which are located in a single geographic location, are referred to is a(n): a. Regional business center b. Business cluster c. Industrial point d. Metroplex

b. Business cluster

Which of the following is a critical issue in sustainable development? a. Supply base optimization b. Climate change c. Countertrade d. Labor and legal problems

b. Climate change

Users in a company can retrieve and study a large amount of information about consumers by housing that information in a centralized database that is commonly referred to as a: a. Social media site b. Data warehouse c. Clickstream cloud d. QR code site

b. Data warehouse

Your top sales executive leaves your company to work for a competitor. Fortunately, all of her notes regarding prior dealings with customers have been captured in a: a. Sales activity management system b. Knowledge management system c. Lead management system d. Sales territory management system

b. Knowledge management system

Influencing and increasing the capabilities of a firms own employees, as well as those of their trading partners, will help to eliminate which of the following obstacles to process integration? a. Lack of trust b. Shortage Gaming c. Risk Pooling d. Lack of Knowledge

b. Shortage Gaming

____________________ tends to reduce safety stocks among supply chain members, generating even less variability in supply chain orders? a. Forward Integration b. Internal quality standards c. Information visibility d. All of these choices are correct.

c. Information visibility

A basic strategy for managing capacity is: a. Focus strategy b. Differentiation strategy c. Level demand strategy d. Queue management strategy

c. Level demand strategy

Your company allows customers to "opt-out" of receiving email advertisements. This is referred to as: a. Event-based marketing b. Customer preference marketing c. Permission marketing d. Customer churn

c. Permission marketing

Which of the following has made external integration more difficult to achieve? a. Lack of software applications to coordinate the effort b. Increased number of franchise operators c. Problems with internal integration efforts d. Identifying key trading partners

c. Problems with internal integration efforts

Which of the following is a vital element in developing a strong supply chain through the practice of process integration? a. Developing and implementing a strong information technology system that allows for fast and easy information exchanges between supply chain partners b. Partnerships, which value information sharing and partner collaborations c. Partner collaborations on methods to improve processes within the supply chain d. All of these choices are correct.

d. All of these choices are correct.

Which of the following is an example of a person that would be considered to provide a Pure Service? a. Management Consultant b. Attorney/Lawyer c. Musical Entertainer d. All of these choices are correct.

d. All of these choices are correct.

A firm wanting to import items duty free and then use the component for local production of a product that is then exported would most likely utilize a(n): a. Duty-free Territory b. International Cross Docking Zone c. International Processing Center d. Foreign Trade Zone

d. Foreign Trade Zone

Service provided by multiple servers acting in parallel is referred to as: a. Multiple-phase queuing system b. Multi-delivery servicescape c. Multi-platform servicescape d. Multiple-channel queuing system

d. Multiple-channel queuing system

Which of the following strategic foreign facilities is set up in a location with an abundance of advanced suppliers, competitors, research facilities, and knowledge centers to get access to the most current information on materials, components, technologies, and products? a. Server factory b. Source factory c. Offshore factory d. Outpost factory

d. Outpost factory

T/F A firm is comparing two potential service layouts using the Closeness Desirability Rating. Option 1's closeness desirability score is 18. Option 2's closeness desirability score is 22. It can be concluded that Option 1 layout is better.

False

T/F The development of functional silos within an organization is considered a key component to achieving successful supply chain process integration.

False

T/F The goal of an efficient queuing system is that customers never have to wait in a queue.

False

T/F According to the text, poor planning is typically the cause of most unsuccessful CRM initiatives.

True

T/F High tariffs encourage multinational corporations to set up factories to produce locally.

True

T/F The European Union (EU) is considered a regional trade agreement.

True

T/F When demand exceeds a supplier's finished goods available, a supplier may allocate product in proportion to what buyers ordered. This rationing often results in shortage gaming by the suppliers' customers.

True

Examples of regional trade agreements include all of the following EXCEPT: a. Association of Indian Markets (AIM) b. European Union (EU) c. Association of Southeast Asian Nations (ASEAN) d. Southern Common Market (MERCOSUR)

a. Association of Indian Markets (AIM)

All of the following are considerations used in designing service layouts EXCEPT: a. Ease of access to parking lot b. Speed up customer throughput c. Reduction of time to restock d. Impulse purchasing

a. Ease of access to parking lot

Building, maintaining and strengthening beneficial relationships with suppliers and customers is accomplished through the use of: a. External process integration b. Data warehouses c. Expediting d. All of these choices are correct.

a. External process integration

Mapping the network of primary trading partners is something that should be done to: a. Help the firm decide which businesses to include in its supply chain management efforts b. Review and establish supply chain strategies c. Obtain point-of-sale information from customers d. Assess and improve internal integration of key supply chain processes

a. Help the firm decide which businesses to include in its supply chain management efforts

The first step in the weighted-factor rating technique is to: a. Identify all factors considered important to the facility location decision b. Assign a weight to each factor c. Assign a performance score to each factor for each location d. Multiply each factor score by its weight and sum the weighted scores for each location

a. Identify all factors considered important to the facility location decision

You are a manager at Sunnydale Appliances. A customer who recently purchased a dishwasher contacts you with a problem and requests warranty information. According to the text, this is an example of: a. Post transaction customer service b. Pre transaction customer service c. Probable customer churn d. Transaction customer service

a. Post transaction customer service

A system which allows sales managers to obtain current information and reporting capabilities regarding each salesperson's activities on each customer's account is referred to as a: a. Sales territory management system b. Knowledge management system c. Lead management system d. Sales activity management system

a. Sales territory management system

According to the text, which of the following would be an example of Coca-Cola's international bottling plants, each serving a small geographic region? a. Server factory b. Offshore factory c. Source factory d. Outpost factory

a. Server factory

The four primary activities of concern in service response logistics are the management of: a. Service capacity, waiting times, distribution channels and service quality b. Labor standards, distribution channels, waiting times and service quality c. Distribution channels, service quality, reputation and waiting times d. Service capacity, visual workplace, waiting times and distribution channels

a. Service capacity, waiting times, distribution channels and service quality

Failing to see the big picture and acting only in regard to single firm in the supply chain can be referred to as: a. Silo mentality b. Balking c. Shortage gaming d. Cross-selling

a. Silo mentality

Having connectivity and visibility to all partners in a firm's supply chain can be accomplished through the use of: a. Mobile Marketing b. Cloud-based communication systems c. Score-carding systems d. Legacy MRP systems

b. Cloud-based communication systems

Which of the following are required elements of an effective CRM initiative? a. Sending out promotional materials via e-mails and traditional mail to a large random group of a potential customers b. Cross-selling customers after an initial purchase c. Preserving a traditional sales force that communicates with the supply-chain members d. All of these choices are correct.

b. Cross-selling customers after an initial purchase

Companies work very hard to reduce the number of customers who don't return. This customer defection is often referred to as: a. Clickstream defection b. Customer churn c. Revenue Exodus d. Balking

b. Customer churn

When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events like birthdays and anniversaries, this is referred to as: a. Segmented selling b. Event-based marketing c. Personal holiday marketing d. Extreme segmentation marketing

b. Event-based marketing

All of the following are recommended for designing and implementing a successful CRM program EXCEPT: a. Knowledge of the tools available to aid in CRM b. Expect employees to 'learn on the job' and adapt their way of working c. Support from the firm's top executives d. Continuous awareness of customers' changing requirements

b. Expect employees to 'learn on the job' and adapt their way of working

Which of the following is a contributor to the bullwhip effect? a. Smaller order sizes b. Forward buying c. Vendor managed inventory d. Using actual demand data

b. Forward buying

The difference between customer expectations and customer perceptions of what was actually received during the service encounter is referred to as service quality ________. a. Blips b. Gaps c. Breakeven point d. Bloops

b. Gaps

When salespeople need to fill end-of-quarter or end-of-year sales quotas they might use ___________, which creates greater use of safety stock causing the bullwhip effect. a. Bullwhip ordering b. Order batching c. Stockpiling d. Order fulfillment

b. Order batching

Substance disposal and recycling are part of which supply chain business process: a. Product development and commercialization process b. Returns management c. Customer relationship management process d. Customer service management process

b. Returns management

David Maister's First Rule of Service is: a. Under-promise and over-deliver b. Satisfaction = perception − expectation c. It always takes longer than you think to perform the service d. You can't please all the customers all the time

b. Satisfaction = perception − expectation

As capacity utilization approaches 1.0, which of the following tends to happen? a. Service times decrease b. Services become more congested c. Perceived quality of service improves d. Wait times decrease

b. Services become more congested

Which of the following is a difference between goods and services? a. Goods are often unique b. Services cannot be inventoried c. Goods have high customer-service interaction d. All of these choices are correct.

b. Services cannot be inventoried

Which of the following is NOT a reason for locating in a business cluster? a. Supply chain improvements b. Sophisticated retailers c. Technology sharing d. Competition

b. Sophisticated retailers

Milan, Wall Street, and Detroit are examples of ____________. a. Regional trade agreements b. Strategic supplier alliances c. Business clusters d. Business conglomerates

c. Business clusters

Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity? a. Cross-training and sharing employees b. Utilizing fewer facilitating products c. Using customers to provide services d. Utilizing technological tools like computers and automated systems

b. Utilizing fewer facilitating products

Facility location has ____________on the supply chain. a. Minimal impact b. A short-term impact c. A long-term impact d. No impact

c. A long-term impact

A practical independent measure firms can take to improve information security is: a. Eliminate employee internet use at work b. Do not collect information about their customers c. Continuously monitor employee desktop applications, e-mails and phone calls d. None of these choices are correct.

c. Continuously monitor employee desktop applications, e-mails and phone calls

A customer approaches a firm with a question regarding her order status and shipping date; the information the firm provides is an example of which of the eight key supply chain business processes: a. Demand management process b. Order fulfillment process c. Customer service management process d. Supply management process

c. Customer service management process

A customer's lifetime value is calculated by: a. Summing the annual sales of the customer and then dividing by the projected lifetime b. The firm's MRP system c. Finding the NPV of a customer's projected lifetime profits for the firm d. Summing the projected annual profitability of the customer

c. Finding the NPV of a customer's projected lifetime profits for the firm

Which of the following is one of the most basic and important activities of CRM? a. Cross-selling customers b. Finding customers c. Segmenting customers d. Increasing churn

c. Segmenting customers

CRM systems today require less training because: a. The systems don't do as many things as they used to. b. Pre-purchase training sessions have become very sophisticated c. They are designed to be more user-friendly d. All of these choices are correct.

c. They are designed to be more user-friendly

Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities? a. Environmental issues regulated by domestic laws or international trade agreements b. Access to suppliers from the location considered c. The stability in the location considered d. All of these choices are correct

d. All of these choices are correct

Regional trade agreements assist with which of the following? a. Monitor national trade policies b. Provide technical assistance for developing countries c. Handle trade disputes d. All of these choices are correct.

d. All of these choices are correct.

Which of the following would be considered a Supply Chain Risk Management activity? a. Diversify the supply base b. Increasing safety stock c. Develop a formal risk management program d. All of these choices are correct.

d. All of these choices are correct.

When CRM applications are available 24/7 on smartphones, tablets, and desktops, this is referred to as: a. Smart CRM b. All-time CRM c. A high-service application d. Continuous connectivity

d. Continuous connectivity

The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased. This type of marketing/promotion is an example of: a. Segmented selling b. Clickstream selling c. Target marketing d. Cross-selling

d. Cross-selling

According to the text, the development of cleaner, more fuel-efficient affordable energy technologies and renewable energy technologies will: a. Increase the cost of production and distribution b. Not have an impact on the supply chain c. Cause companies to shut down d. Decrease the costs in the supply chain

d. Decrease the costs in the supply chain

Why do so many CRM programs fail? a. Because of incompatible information and communication systems b. They are so expensive that it is hard to recover the investment c. They take the firm away from concentrating on their key suppliers d. Firms concentrate more on the CRM software instead of taking care of customers

d. Firms concentrate more on the CRM software instead of taking care of customers

Which of the following is NOT a technique for managing customers' perceived waiting times: a. Grouping customers b. Starting the service quickly c. Keeping customers occupied d. Hiding the wait time

d. Hiding the wait time

According to the text, all of the following are considered key supply chain business processes EXCEPT: a. Supplier relationship management process b. Manufacturing flow management process c. Product development and commercialization d. Knowledge management process

d. Knowledge management process

The coordination and sharing of information and resources to jointly manage a process is referred to as: a. Differentiation b. Reverse logistics c. Simplification d. Process integration

d. Process integration

All of the following are included in the five dimensions of service quality EXCEPT: a. Assurance b. Responsiveness c. Reliability d. Reasonability

d. Reasonability

A customer who enters the waiting line but leaves the system prior to receiving service is said to have: a. Stalled b. Balked c. Disposed d. Reneged

d. Reneged

Which of the following secures the right of employees to decide whether to join or financially support a union? a. Union planning forums b. Union shop laws c. Ethical union initiatives d. Right-to-work laws

d. Right-to-work laws

________________ is important because what we do today will affect future generations. a. An offshore factory b. Customer churn c. Progressive design d. Sustainable development

d. Sustainable development