MKT 411 Exam 3 (Ch. 9, 10, 11)
Tire manufacturer Firebridge sells tires to retail firm A. Average annual sales for firm A is $55,000. Average profit margin is 15%. The expected lifetime is 10 years. Using a discount rate of 15 percent, calculate the Customer Lifetime Value of firm A and choose the closest answer below: a. $5,500 b. $41,405 c. $25,675 d. $38,590
$41,405
A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three warehouses to become more centralized and keep the same customer service levels. Determine the average warehouse inventory levels, using the square root rule. (Choose the closest answer.) a. 25,820 b. 15,492 c. 6,667 d. 11,619
15,492 (4000*5*[(3/5)^.05])
Facility location has ____________on the supply chain. a. Minimal impact b. No impact c. A short-term impact d. A long-term impact
A long-term impact
The three inputs for calculating Customer Lifetime Value are Average Annual Sales, Expected Lifetime and Forecasted Profits. a. True b. False
False
A customer's lifetime value is calculated by: a. The firm's MRP system b. Summing the annual sales of the customer and then dividing by the projected lifetime c. Summing the projected annual profitability of the customer d. Finding the NPV of a customer's projected lifetime profits for the firm
Finding the NPV of a customer's projected lifetime profits for the firm
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. Lead management system b. Knowledge management system c. Sales territory management system d. Sales activity management system
Knowledge management system
______________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized. a. Logistics b. Operations c. Transportation planning d. Procurement
Logistics
In the text, Table 9.1 shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years. a. Decreased for the first 10 years, then increased b. Slowly declined c. Remained the same d. More than quadrupled
More than quadrupled
________________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S. a. Rail Carriers b. Air Carriers c. Motor Carriers d. Water Carriers
Motor carriers
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
Continuously monitor employee desktop applications, emails, and phone calls
For integrated supply chains, logistics is considered: a. Somewhat important b. Not at all important c. Important d. Critically important
Critically important
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. Cross-selling b. Clickstream selling c. Target marketing d. Segmented selling
Cross-selling
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. Preserving a traditional sales force that communicates with the supply-chain members c. Cross-selling customers after an initial purchase d. All of these choices are correct.
Cross-selling customers after an initial purchase
The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as: a. Customs Brokering b. Crossdocking c. Risk pooling d. Piggy backing
Crossdocking
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. Event-based marketing b. Extreme segmentation marketing c. Segmented selling d. Personal holiday marketing
Event-based marketing
Why do so many CRM programs fail? a. Firms concentrate more on the CRM software instead of taking care of customers b. They are so expensive that it is hard to recover the investment c. Because of incompatible information and communication systems d. They take the firm away from concentrating on their key suppliers
Firms concentrate more on the CRM software instead of taking care of customers
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. Foreign Trade Zone b. Duty-free Territory c. International Cross Docking Zone d. International Processing Center
Foreign Trade Zone
A ___________________ consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates. a. Freight forwarder b. Transportation broker c. Load broker d. Consolidation forwarder
Freight forwarder
It is argued that transportation deregulation is good because: a. It ensures adequate transportation service throughout the country b. It protects consumers in terms of monopoly pricing c. It encourages competition d. All of these choices are correct.
It encourages competition
Reverse logistics can have a positive impact on the environment through activities such as? a. Data warehousing b. Reneging c. Risk pooling d. Recycling
Recycling
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. Lead management system c. Sales activity management system d. Knowledge management system
Sales territory management system
When mistakes occur in the supply chain, which of the following things might happen? a. More safety stock must be held b. Customer service levels drop c. Cost may increase due to expedited deliveries d. All of these choices are correct.
All of these choices are correct
Regional trade agreements assist with which of the following? a. Provide technical assistance for developing countries b. Handle trade disputes c. Monitor national trade policies d. All of these choices are correct.
All of these choices are correct.
Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities? a. The stability in the location considered b. Environmental issues regulated by domestic laws or international trade agreements c. Access to suppliers from the location considered d. All of these choices are correct.
All of these choices are correct.
Which of the following is a direct benefit from the adoption of NAFTA? a. A reduction in immigrants crossing the border from Mexico b. An increase in trade between U.S., Canada, and Mexico c. An increase in trade between U.S. and China d. An increase in manufacturing job opportunities in the U.S.
An increase in trade between US, Canada, and Mexico
Examples of regional trade agreements include all of the following EXCEPT: a. European Union (EU) b. Association of Southeast Asian Nations (ASEAN) c. Southern Common Market (MERCOSUR) d. Association of Indian Markets (AIM)
Association of Indian Markets (AIM)
Interconnected companies and institutions from a particular field which are located in a single geographic location, are referred to is a(n): a. Metroplex b. Regional business center c. Industrial point d. Business cluster
Business cluster
Milan, Wall Street, and Detroit are examples of ____________. a. Business conglomerates b. Business clusters c. Strategic supplier alliances d. Regional trade agreements
Business clusters
Which of the following is a critical issue in sustainable development? a. Labor and legal problems b. Countertrade c. Supply base optimization d. Climate change
Climate change
A firm offers group discount for orders exceeding 15. Two firms are taking advantage of this offer. Sales to Company A averages $15, 000 of annual sales, has a 22% profit margin and an expected lifetime of 8 years. Company B averages $11, 000 of annual sales, has a 25% profit margin and an expected lifetime of 9 years. Which is the more important customer based on the higher expected lifetime value? Assume a 7% discount rate. a. Company B because its' NPV = $21,224 b. Company A because its' NPV = $17,917 c. Company B because its' NPV = $22,349 d. Company A because its' NPV = $19,705
Company A because its' NPV = $19,705
_______________ carry the majority of the world's water-transported manufactured goods. a. Containerships b. Barges c. Supertankers d. None of these choices are correct.
Containerships
When CRM applications are available 24/7 on smartphones, tablets, and desktops, this is referred to as: a. All-time CRM b. Continuous connectivity c. A high-service application d. Smart CRM
Continuous connectivity
Companies work very hard to reduce the number of customers who don't return. This customer defection is often referred to as: a. Balking b. Clickstream defection c. Customer churn d. Revenue Exodus
Customer churn
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. QR code site b. Data warehouse c. Clickstream cloud d. Social media site
Data warehouse
According to the text, the development of cleaner, more fuel-efficient affordable energy technologies and renewable energy technologies will: a. Cause companies to shut down b. Decrease the costs in the supply chain c. Not have an impact on the supply chain d. Increase the cost of production and distribution
Decrease the costs in the supply chain
All of the following are recommended for designing and implementing a successful CRM program EXCEPT: a. Expect employees to 'learn on the job' and adapt their way of working b. Support from the firm's top executives c. Continuous awareness of customers' changing requirements d. Knowledge of the tools available to aid in CRM
Expect employees to 'learn on the job' and adapt their way of working
A primary advantage for motor carriers is the weather. a. True b. False
False
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. Outpost factory c. Source factory d. Offshore factory
Outpost factory
Your company allows customers to "opt-out" of receiving email advertisements. This is referred to as: a. Event-based marketing b. Customer churn c. Customer preference marketing d. Permission marketing
Permission marketing
What is a product positioned strategy? A product positioned strategy: a. Places warehouses midway between the sources of supply and the customers b. Places warehouses close to the sources of supply c. Places warehouses close to customers d. None of these choices are correct.
Places warehouses close to the sources of supply
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
Post transaction customer service
Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal a. Waste management companies b. Railroad companies c. Warehouse management companies d. Trucking companies
Railroad companies
Returns management is also known as _______. a. Inverted logistics b. Backward logistics c. Reverse logistics d. Waste reduction
Reverse logistics
Which of the following secures the right of employees to decide whether to join or financially support a union? a. Right-to-work laws b. Union planning forums c. Ethical union initiatives d. Union shop laws
Right-to-work laws
Foreign-trade zones are: a. Secure sites in foreign countries where goods wait for clearance by importing country b. Markets in the U.S. where foreign countries set up and sell products c. Bodies of water where cargo ships are allowed to dock to deliver imported goods d. Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes
Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes
Which of the following is one of the most basic and important activities of CRM? a. Cross-selling customers b. Increasing churn c. Segmenting customers d. Finding customers
Segmenting customers
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. Outpost factory c. Offshore factory d. Source factory
Server factory
What type of firm would be most interested in using a third-party logistics service? a. A for-hire transportation company b. Large integrated global manufacturing company c. Small firm with no logistics expertise d. A freight forwarder
Small firm with no logistics experience
Which of the following is NOT a reason for locating in a business cluster? a. Sophisticated retailers b. Competition c. Technology sharing d. Supply chain improvements
Sophisticated retailers
________________ is important because what we do today will affect future generations. a. An offshore factory b. Progressive design c. Sustainable development d. Customer churn
Sustainable development
The World Trade Organization (WTO) is critical to the facility location decision process because of their impact on: a. Southeast Asian Nations b. Innovation c. Relationship marketing d. Tariffs
Tariffs
Which of the following marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry? a. The Interstate Commerce Act of 2013 b. The Shipping Act of 1984 c. The Granger Laws d. The Transportation Act of 1920
The Shipping Act of 1984
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.
They are designed to be more user friendly
According to the text, poor planning is typically the cause of most unsuccessful CRM initiatives. a. True b. False
True
High tariffs encourage multinational corporations to set up factories to produce locally. a. True b. False
True
The European Union (EU) is considered a regional trade agreement. a. True b. False
True
The responsibility of transportation is to create both time utility and place utility, which means that products will be delivered at the right time to the desired location. a. True b. False
True