Business Information System Exam 2

Michelle runs a shop on Etsy. One month, she spends $2,800 to promote her shop on Etsy and other social media sites. In that month, she gains 50 new customers. What is her customer acquisition cost for that month?

$56 -Customer acquisition cost is the costs spent trying to gain new customers divided by the actual number of customers actually gained. $2,800/50 = $56.

A corporation's Twitter report card indicates that engagement has dropped off in the past two months. What information from the tweet activity dashboard could they use to determine the cause of this drop off in engagement?

A change in demographics of the people who are engaging with their tweets. - The tweet activity dashboard provides metrics on individual tweets and demographic information of the people engaging with the tweets. The Twitter report card provides higher level information regarding influencers and highlighting high-performing tweets.

Which of the following scenarios represents a customer acquisition cost of $100?

A company spends $100,000 on advertising and marketing in one month. They gain 1,000 new customers in that month. - Customer acquisition cost is the costs spent trying to gain new customers divided by the actual number of customers actually gained. $100,000/1,000 = $100.

What is conducted in the process modeling step of business process management?

Analysts use flowcharts and other tools to depict workflow. - In the modeling step, analysts use flowcharts and other tools to illustrate workflow and provide decision makers with recommendations when shortages or excesses occur.

Organizations that use an on-premises business management system

Are also responsible for maintaining, updating, and securing the system. - Ensuring that the system is maintained, updated, and secured is a major drawback to on-premises systems.

Which statement best describes the impact of Moore's Law on business management systems?

As computer chips become more powerful, more powerful business management software is written and the overall system's capabilities improve. -Programmers continually write new software that uses increased computing capability to support new or improved features.

________ involves identifying errors in data sets and removing/correcting these errors to ensure the data is accurate.

Data scrubbing

What typically happens during Step 3 of business process management just before the execution process is fully automated?

Decision makers compare engine output to previous business activity. - After decision makers have played "what-if" games using various input variables, they confirm the process execution is valid by comparing engine output to previous business activity.

Which View lets you change database table Field Names and Field Properties?

Design View

What is the primary reason that businesses use CRM systems to help them identify MQLs and SQLs during the customer acquisition process?

Different engagement is needed to turn each type of lead into a customer. - CRM software helps businesses identify which leads are MQL and which are SQL so that the businesses can properly engage both groups and turn them into customers.

A sales associate has been hired to write blog posts that will be regularly published on a blog about new beauty products. The blog posts are designed to include the SEO terms that relate to the company's newest skin care product, using the keywords that will also be used in their advertising campaigns. What part of the e-commerce timeline would this be a part of?

Implementation - The sales associate will be performing tasks related to search engine optimization (SEO) which occurs during the implementation phase of the e-commerce timeline.

An appropriate social media goal for a business that wishes to raise its public profile is

Increasing brand awareness. - A business that increases its brand awareness increases its visibility and builds greater recognition of its brand on social media and in the marketplace.

E-commerce transactions that are executed using wireless mobile devices are known as

M-commerce. - M-commerce refers to e-commerce transactions executed by any internet-connected mobile device.

Some popular social media management systems are becoming more difficult to manage because

Millions of diverse users across the globe are active participants. -Growing global usage and great diversity means that coordinated management is difficult to achieve.

Doing a data quality audit helps ensure the highest quality of data being used for business intelligence and other applications. The data analysis method involves quality assessment, design, transformation, and ________.

Monitoring

The phenomenon in which computer chips double in computing power roughly every 18 months is called

Moore's Law. - Gordon Moore, cofounder of Intel Corporation, noticed this phenomenon with the computer chips his firm developed.

The organizations likely to benefit the most from the global reach of e-commerce are those that

Previously depended on foot traffic into one physical store to sell their products. - E-commerce's global reach means that small retailers can vastly increase their sales by using a website to sell to consumers located almost anywhere, at any time, instead of being limited by the number, location, and/or hours of a physical store.

What is the role of social media information systems (SMIS) in consumer behavior?

SMIS provide user data and analytics tools that help inform consumer behavior researchers. - SMIS provide user data and analytics tools that aid in the study of consumer behavior, which helps organizations understand their audiences.

In a data warehouse, data is analyzed using business intelligence (BI) tools, ________ clients, and a variety of analytics applications designed to interpret the data.

SQL

Cloud-based ERP solutions are usually offered as

SaaS. -Cloud-based ERP solutions are usually offered as Software as a Service (SaaS).

Which privacy law gives the government authority to prevent unfair or deceptive trade practices?

Section 5 of the Federal Trade Commission - Section 5 of the Federal Trade Commission gives the government the authority to prevent unfair or deceptive trade practices.

Which of the following is the term for CRM analytics that provides information about where data erosion occurs and how the erosion can be minimized?

Standardized Data Collection Processes -CRM analytics that provide information about where data erosion occurs and how the erosion can be minimized is known as Standardized Data Collection Processes.

The first two steps in business process management (BPM) are examining the design of the process and modeling the process. What are the third and fourth steps of the process?

Step 3: running the process; Step 4: monitoring the process -The five steps of business process management (BPM) in order are: examining the design of the process, modeling the process, running the process, monitoring the process, and initiating process improvements.

Integrating a business software module into an ERP has several advantages. Which of the following business software modules includes customer payment information?

TPS software -Transaction processing software (TPS) includes customer payment information, among other resources.

What occurs in the process execution step of business process management?

The business process execution language engine is run. - Following Steps 1 and 2 of business process management, in which a process management engine is designed, modeled, and written in a business process execution language (BPEL), the process engine is run. This is Step 3, called the process execution step.

Which statement best explains why knowing an organization's value proposition is important for creating its social media information system (SMIS)?

The organization can increase its exposure and user engagement on social media by designing an SMIS that enables it to reinforce and build on its identified strengths. - Knowing what an organization's customers or members value about its products or services enables that organization to use this information to craft a more appealing social media presence and engage these target markets.

Which statement best describes the current landscape or state of human resource management software and/or service providers?

There are a variety of HRM companies that serve different business needs. - Large HRM firms typically serve the general HR needs of large corporations and many smaller firms have popped up to provide services for smaller companies or specialized services.

What is the term for a CRM that tracks the type of sale that is most likely to make a person purchase an item that they have previously viewed on an e-commerce site?

User Experience -A CRM system that is designed to capture data about why users are buying a product or service is engaging user experience.

Why would a business choose to implement a business intelligence (BI) software system that their employees are already familiar with?

User familiarity will make the implementation easier and as seamless as possible. - When implementing a new business intelligence (BI) system, user familiarity will make the transition more seamless. For example, if the business is already using QuickBooks for its accounting, the savvy manager would purchase a BI system from Intuit.

To remain relevant in today's e-commerce landscape, many businesses use progressive ________ applications to undertake m-commerce.

Web - Progressive web applications (PWAs) are a type of application software that is distributed via the web, designed to run on most platforms and web browsers, and does not require a web app to be installed and used for mobile commerce (m-commerce).

On an e-commerce presence map, what is presence?

Websites, email, social media sites, and offline media - Presence is the websites, email, social media sites, and offline media.

A high-end jewelry designer creates several different brands of jewelry for women of different ages and tastes. To gain the greatest exposure to her potential customers on social media, her SMIS should be designed to use the platforms that

are most used by the target markets for each jewelry line or brand. -The jewelry designer's brands probably each have slightly different target markets, so the SMIS should be designed to use all the platforms that cater to each, for maximum exposure.

How is quantitative data about a customer most accurately characterized?

as a record of how a customer interacts with a business - Quantitative customer data is a category that includes transaction history, online activity, customer service history, and inbound/outbound communication. The number of times a customer may interact (check products online, require service, e.g.) can be a meaningful data point for a business.

Many managers, particularly in smaller firms, use companies such as Zenefits and BenefitFocus to manage their employees

benefits systems. - Zenefits and BenefitFocus are examples of software as a service packages that many smaller and some mid-size forms use to manage employee benefits programs.

What does business-to-consumer (B2C) e-commerce replace?

brick-and-mortar store locations - Business-to-consumer (B2C) e-commerce replaces in-store shopping and purchasing at brick-and-mortar store locations. Instead, the internet serves as the location and e-commerce sites serve as the portals between consumers and businesses.

The role of a DBA is to ________ and maintain tables in a relational database.

build

How does using a CRM to track customer acquisition rates help organizations improve their future customer acquisition rates?

by revealing whether their marketing efforts are effective or require changes - Tracking customer acquisition rates allows organizations to see how effectively their marketing efforts are leading to actual sales, and thus alerts them to when changes in marketing are necessary.

When data is stored in one place, it means it is ________.

centralized

A cloud database is a type of database developed on a ________ platform and retrieved by a cloud platform.

cloud

To create a relationship between two tables, you must use a ________ field that is present in both tables.

common

Recognizing that inappropriate and inconsistent pay can demotivate the strongest workforce, many firms use

compensation management software. - Smart employee compensation strategy is essential to a firm's success.

Online marketplaces where one consumer sells to another consumer are called

consumer-to-consumer (C2C). - Online marketplaces where one consumer sells to another consumer are called consumer-to-consumer marketplaces. For instance, eBay, Craigslist, and parts of Amazon allow for C2C transactions.

As e-commerce continues to develop, many retailers are likely to maintain some type of "brick-and-mortar" store or physical location primarily because

consumers expect integrated shopping experiences that include face-to-face options.

The key goals of data governance include rules for data use, requirement compliance, high-quality data, and _________.

cost reduction

Parameter queries prompt the user for values in order to run/execute the query. When the value of a parameter is given, the query applies the field as a ________.

criterion

Saraiya runs a small café. She would like to start placing small ad buys on social media and hires an analytics firm to determine which platforms she should advertise on. What type of cost would this be considered?

customer acquisition cost - Customer and acquisition costs include any costs related to the analytics used to determine optimal placement on social media platforms.

An organization learns from a social media site that less than 10 percent of users who visit their page engage with the video that is pinned to the top. This is an example of what type of information?

customer interaction - Analytics that let an organization know the number of visitors who engage with their content is an example of customer interaction information.

Sales managers must identify the customer leads that best fit the company's goals. CRM assists in this aspect of a company's sales process, which is known as

customer qualification. - Qualifying potential customers is an important part of the sales process. CRM helps managers identify customers who are likely to be valuable to an organization.

The understanding that retaining customers is more profitable than finding new ones is behind which business management system?

customer relationship management -This understanding is the basis for the customer relationship management (CMR) system's purpose.

Of these business management systems, which one is focused on how managers can develop a lasting relationship with individual customers that promotes long-term buying?

customer relationship management system - A customer relationship management system's purpose is to focus on the customer experience in order to attract and retain customers, with the ultimate goal of increasing sales, market share, and profit.

The business management system that collects customers' email, telephone, and social media data and adds information about their buying habits is a(n)

customer relationship management system. - This system stores and analyzes detailed customer identification data and buying information.

The information needed to calculate share of customer is provided, in large part, by

customer relationship management systems. - The information needed to calculate share of customer, as well as the identification of what areas to capitalize on, can be gained from CRM systems. CRM systems can be set up to capture and create analytics to help capture more share of wallet. Without the use of a database and CRM system, this can be a difficult process.

Data centralization is necessary for maintaining ________.

data integrity

Using multiple lists and data sources can lead to a(n) ________ in data integrity.

decrease

Smaller firms may rely on software packages such Kronos Workforce Ready, BambooHR, PerformancePro for services related to

employee evaluation. -These software packages are a good fit for mid-size or smaller firms that need to confidentially maintain and manage employee records.

The value that the future lifetime revenue an organization's customers will generate minus customer acquisition costs and customer retention costs is called customer

equity -Customer equity is the value that the future lifetime revenue an organization's customers will generate minus customer acquisition costs and customer retention costs.

One benefit of using a CRM system to segment a market (rather than another type of market segmentation tool) is that a good CRM tool

facilitates using the company's own, collected data about customers. - A good CRM should be able to efficiently link data from a variety of sources, including the company's own databases of market data for potential and existing customers.

What must be integrated into an organization's enterprise resource management solution to allow it to create and maintain regulatory and compliance information from a centralized location?

financial management systems software - If an ERP system has an integrated financial management system, the organization can maintain compliance to legal and accounting regulations across multiple areas of operation, from a centralized location.

A new app was released providing consumers with digital coupons for products the consumer indicates they frequently purchase. The app gives different users coupons with different values and shares purchasing as well as demographic information with the product manufacturer. Under what circumstances would the information sharing with product manufacturers be ethical?

if the app's terms of service indicated who they would be sharing information with and what information would be shared - A company can ethically share your user data with third parties as long as they disclose it to you in some way—generally within the terms of service agreement.

What is the overarching goal of organizations choosing to adopt an enterprise resource planning (ERP) system?

increase operational efficiency - The success of an organization depends largely on increasing operational efficiency and business value overall. Enterprise resource planning (ERP) software helps provide guidance on the processes and procedures that contribute to increased operational efficiency.

The ultimate purpose of a customer relationship management system (CRM) is to

increase sales, market share, and profit. - The CRM's ultimate purpose is increasing sales, market share, and profit. It achieves this goal by focusing on the individual customers, identifying the most valuable customers, interfacing with other management systems, and more.

One of the features of using web mining is that it improves website usability. This usability refers to how easily website users can ________ with the site.

interactCorrect

Data marts are used to track ________, purchase transactions, and the supply chain.

inventoriesCorrect

Calculating reordering points and order quantity levels are key advantages of modern

inventory management systems. -Inventory management systems provide calculations for when businesses need to re-order necessary items or components and in what quantity.

Descriptive data about a customer includes categories such as

lifestyle and career. -Descriptive data includes lifestyle, career, family status, and education. This data type provides additional information about the customer base.

A database relationship is a(n) ________ between tables that define how the data are related.

link

Customized communication is best described as

matching the message to the individual customer. - Customized communication, or properly matching messages to the customer, results in less wasted communication, more sincere communication, and effectiveness.

During the optimization process step of business process management, what are two key things manager look for in the process?

potential slowdowns and savings opportunities - During the fifth step in business process management, called process optimization, managers and decision makers identify potential slowdowns and savings opportunities. Based on their findings, improvements are made to the process.

Which of the following uses algorithms to determine likely outcomes given a set of inputs?

predictive analysis - Predictive analysis uses algorithms to determine likely outcomes given a set up inputs.

What aspect of today's business environment is central to the need for robust transaction management processing systems?

proliferation of e-commerce-based organizations - The proliferation of e-commerce-based organizations today has increased the need for more robust transaction management processing systems and encouraged their integration into ERP systems.

In the initiation phase of project management, the client and project manager determine if the project is SMART. What does the R in SMART refer to?

realistic - The R in SMART refers to realistic.

A database record is also referred to as a ________ in the table.

rowCorrect

Which step in securing customer data ensures proper management of firewalls and routers?

server security - It is important to take security measures to protect data. Employing server security methods, such as ensuring firewalls and routers are managed and secured, is an essential step.

Suppose you are a company whose target market is identified as homeowners who live in suburban regions of the American Midwest. From the list below, choose the product you are most likely selling.

snow blowers - It is likely that homeowners (rather than renters) living in suburban areas (with driveways and sidewalks) of U.S. regions that traditionally get moderate to heavy snowfall will be interested in purchasing snow blowers.

data quality audit uses ________ analysis to test data, variabilities, and outcomes against test data.

statistical

When creating a relationship in a relational database management system (DBMS), which object is used?

table

A database and a DBMS are different. A database is a collection of metadata, relationships, and ________.

tables

In addition to the probable outcome, what other information does modern business intelligence software provide?

the degree of likelihood of the outcome -Because managers now need to base decisions on nuanced information, modern business intelligence tools provide the degree of likelihood of the outcome occurring.

It is especially important for startup companies to create and follow a well-designed e-commerce strategy. Which of the following is the first phase in a well-designed strategy?

web planning - The first phase of a well-defined e-commerce strategy is web planning.

One of the ways web mining improves web experiences is through site visibility. Site visibility includes how and ________ the website appears when queries are executed in a search engine.

when