OMIS 320 Test 3

In cost- of- service pricing, the cost of shipping increases proportionally with distance.

False

International intermediaries can provide shipping, consolidation, and other import and export services. Some examples of these international intermediaries include: foreign freight forwarders, NVOCCs, FTZs, and TOFCs.

False

The European Union (EU) created the world's largest free trade area.

False

Since many companies do not have the knowledge, resources (money/ people), or capability of building an infrastructure to support a CRM program, many companies have chosen to outsource this responsibility to a(n): A. ASP B. Customer Support Specialist Firm C. DSS D. Marketing Facilitator

ASP

According to the textbook, which of the following statements is TRUE? A. CRM stands for customer resource management B. ASP stands for application service provider C. CRM stands for centralized resource management D. ASP stands for accelerated shipment process

ASP stands for application service provider

Limitations of air carrier transport include cost and airport accessibility.

True

According to the text, FOB destination pricing is typically preferred for all of the following EXCEPT: A. High- value shipments B. Buyer has little transportation expertise C. Buyer is purchasing a recurring order D. Small Shipments

Buyer is purchasing a recurring order

Which of the following is NOT a characteristic of cost- of- service pricing? A. Prices are established based on fixed and variable costs of transportation. B. Prices vary based on volume and distance. C. Prices tend to rise as shipping distance increases. D. Carriers price their services at the highest levels the markets will bear.

Carriers price their services at the highest levels the markets will bear.

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. Clickstream B. QR code C. Date Warehouse D. Social Media Site

Data Warehouse

When integrating new CRM modules, it is important that compatible CRM modules are linked to a(n): A. Data warehouse B. Data knowledge system C. Sales Activity Management D. Sales Force Automation System

Data Warehouse

The following are all examples of lean warehousing capabilities EXCEPT: A. Decreased assembly operations B. Greater Emphasis on crossdocking C. Reduced lot sizes and shipping quantities D. Increased Automation

Decreased Assembly Operations

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. Segmented Selling C. Personal Holiday Marketing D. Extreme Segmentation Marketing

Event- Based Marketing

A country that imposes high tariffs encourages foreign- based companies to import goods.

False

A lead factory is set up in a location with an abundance of advanced suppliers, competitors, research facilities and knowledge centers in order to have access to the most current information on materials, components, technologies and products.

False

According to the textbook, the five basic modes of transportation are motor, rail, air, water, and cyberspace.

False

Segmenting customers on the basis of things like products purchased, sales history, demographic information, and desired product features can dilute the results of a CRM program; segmenting customers should be avoided.

False

Facility location is a business decision that will ultimately impact issues like the cost of supplies, facilities, and materials, as well as lead times and customer service levels.

True

Future Trends in CRM include coping with the delicate issue of privacy, utilization of social media, and utilization of cloud computing.

True

Generally speaking, rail carriers are less expensive than motor carriers.

True

The primary difference between FOB origination and FOB destination is that FOB destination requires that the supplier legally own the product until it reaches the destination; in FOB origination the buyer takes ownership immediately and is thus responsible for arranging delivery.

True

With FOB pricing, a supplier is the legal owner of a product until the product reaches its destination.

True

Which of the following is a method that organizations typically use in attempting to effectively manage the relationships between the organization and its customers at the customer service level? A. Reengineering and/ or automating call centers based on past call center data. B. Developing web sites that allow customers to access their personal accounts and/ or information like hours of operation, store locations, and product information. C. Utilizing CRM programs to administer personalized surveys based specific customer segments. D. All of these

All of these

The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an email 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. Target Marketing B. Segmented Selling C. Clickstream Selling D. Cross- Selling

Cross- Selling

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. Piggy Backing B. Crossdocking C. Transhipping D. Customs Brokering

Crossdocking

Companies work very hard to reduce the number of their present customers which never return. This customer defection is often referred to as: A. Customer Churn B. Clickstream Defection C. Balking D. Revenue Exodus

Customer Churn

The element of a CRM program in which a customer's lifetime value is calculated is referred to as: A. Segmenting Customers B. Predicting Customer Behaviors C. Customer Value Determination D. Customer Preference Determination

Customer Value Determination

Which of the following customer service elements can be classified as examples of pre- transaction elements? A. Salesperson politeness and order processing capabilities B. Warranty repair capabilities and customer complaint resolution C. Product returns and information about the operation of the product purchased D. Customer service policies and the company's choice of organizational structure

Customer service policies and the company's choice of organizational structure

The Department of Transportation was created by the 1920 Transportation Act.

False

A small LTL shipment that originates on a truck in Los Angeles and is moved from Los Angeles to Phoenix, where it is unloaded and put onto another truck for final shipment to Denver would be considered an intermodal shipment since it utilizes more than one vehicle during shipment.

False

According to the text, with increasing globalization, the access to global markets and corporate network makes the role of location less important as a source of competitive advantage.

False

Cloud computing is a term used to describe how a customer navigates a website.

False

Companies that provide on- demand applications are often referred to as data warehouses.

False

The Americas have two primary regional trade agreements, NAFTA, an agreement between the United States, Canada, and Mexico, and COMESA, an agreement between all of the South American Countries.

False

Up until now, CRM has been very effective for most companies because it has focused on building customers' trust and loyalty, ultimately building a strong relationship with the customer through programs that make it easy for the customer to return products and get information from people inside the organization.

False

When web sites suggest other items for purchase based on already purchased items, this is an example of Clickstream Selling.

False

Public warehouses can provide a wide range of services. Which of the following is NOT one of the services offered by public warehouses? A. Breakbulk B. Assembly C. Repackaging D. High Security Shipment

High Security Shipment

The transportation legislation that created the Interstate Commerce Commission (ICC) was which of the following: A. Interstate Commerce Act B. Motor Carrier Act C. Granger Laws D. Interstate Initiation Act

Interstate Commerce Act

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. Sales Territory Management System C. Lead Management System D. Knowledge Management System

Knowledge Management System

All of the following are requirements for designing and implementing a successful CRM program EXCEPT: A. Support from the firm's top executive. B. Knowledge of the tools available to aid in CRM C. Adherence to a static CRM program D. Continuous awareness of customers' changing requirements

Knowledge of the tools available to aid in CRM

What does LTL stand for in the transportation industry? A. Logistical Train- car Lift B. Less- Than- Truckload C. Large Truck Leasing D. Local Train Logistics Carriers

Less- Than- Truckload

The supply chain management element that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements is also referred to as: A. Operations B. Transportation Planning C. Logistics D. Procurement

Logistics

Which of the following is NOT consistent with a decentralized warehousing system? A. Higher safety stocks required B. Shorter lead times C. Lower Transportation fees D. Lower Total Operating Costs

Lower Total Operating Costs

The use of quick response codes (QR Codes) to retrieve marketing information is a type of: A. Geographic Marketing B. Target Marketing C. Customer Churn D. Mobile Marketing

Mobile Marketing

According to the textbook, the largest ocean container- ships can carry how many twenty- foot containers? A. Between 3,000 and 5,000 B. Between 5,000- 8,000 C. Between 8,000- 10,000 D. Over 10,000

Over 10,000

You're 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. Customer Churn B. Post- transaction customer service C. Customer Management D. Pre- transaction customer service

Post- transaction customer service

The element of a CRM program involved with the use of data- mining software and customer behavior analytics is: A. Segmenting Customers B. Predicting Customer Behaviors C. Customer Value Determination D. Customer Preference Determination

Predicting Customer Behaviors

According to the text, a warehouse location strategy that proposes locating a warehouse closest to the sources of supply is referred to as: A. Market Positioned Strategy B. Supply Positioned Strategy C. Product Positioned Strategy D. Intermediately Positioned Strategy

Product Positioned Strategy

Which of the following are required elements of an effective CRM initiative? A. Sending out promotional materials via emails and traditional mail to a large random group of a potential customers. B. Segmenting Customers C. Preserving a traditional sales force that communicates with the supply- chain via a traditional paper document/ contract system D. All of these

Segmenting Customers

What is the abbreviation for a truck trailer which is placed on a flat railcar that would then be pulled by a train engine? A. TOFC B. COFC C. NVOCC D. TTFC

TOFC

You work for a company that segments customers by demographic information, markets specifically to those customers who are located in the Los Angeles area. This is an example of: A. Target Marketing B. Cross- Selling C. Geographic Marketing D. Personalized Customer Communication

Target Marketing

According to the text, in logistics, a "perfect order" occurs when: A. The Seven R Rule is satisfied B. A customer is successfully cross- selled C. Customer churn does not occur D. Clickstream is minimized

The Seven R Rule is satisfied

Which of the following international intermediaries helps foreign buyers and sellers find each other and then handles all of the shipping arrangements and documentation preparation? A. Customs Broker B. Foreign Freight Forwarder C. Trading Company D. NVOCC

Trading Company

Which of the following would be considered an act of deregulation? A. Reed- Bullwinkle act- legalized rate bureaus or conferences. B. Granger Law- established maximum rates, prohibited discrimination, and forbade mergers for railroads. C. Trucking Industry Regulatory Reform Act- motor carriers freed from filing rates with the Interstate Commerce Commission. D. Freight Forwarders Act- allowed Interstate Commerce Commission control over freight forwarders; controlled entry, rates, and services.

Trucking Industry Regulatory Reform Act- Motor carriers freed from filing rates with the Interstate Commerce Commission.

China's economy is shifting from labor- intensive industries to arrears like marketing and the production of high technology products that typically provide higher levels of value.

True

Cross- Selling is a term used when customers are sold additional products as the result of an initial purchase.

True

Efficient supply chain management distribution requires that modern warehouses concentrate their efforts on a wide array of warehousing and distribution functions like storing purchases, work in progress inventories, and finished goods inventories, receiving shipments, breaking down shipments, repackaging, and the distribution of components.

True

It is best to integrate information about and results relating to marketing efforts like customer loyalty programs, frequent user cards, and credit card applications within an organization. Integrating the efforts of these programs between employees and an organization's IT systems (data warehouses) can help managers make more informed customer- focused decisions.

True

Private clouds allow corporate users to internally manage their data centers.

True

Some of the ways customers evaluate the customer service capabilities of an organization are through their experiences with human response call centers, automated response call centers, and consumer web sites.

True

The WTO is the only global international organization dealing with the rules of trade between nations.

True

The responsibility of transportation is to create both time utility and place utility, which means that products will be delivered at precisely the right time to the desired location.

True

Which of the following modes of cargo transport can be characterized as being the most inexpensive and very slow, yet good for transporting very heavy goods a long- distance? A. Air Carriers B. Rail Carriers C. Water Carriers D. Motor Carriers

Water Carriers

Which of the following carriers typically transports goods for the company that owns the carrier, they are not subject to economic regulation, and since the fleets are rather large, the cost of transport is very likely less than if the company had hired another company to provide the service? A. Common Carrier B. Exempt Carrier C. Contract Carrier D. Private Carrier

Private Carrier

Your company's marketing efforts allow customers to "opt-out" of receiving email advertisers. This is referred to as: A. Event- based marketing B. Relationship Marketing C. Customer Churn D. Customer Preference Marketing

Relationship Marketing

According to the text, poor planning is typically the cause for most unsuccessful CRM initiatives.

True

According to the text, currently the three largest private warehouse operators in North America are: A. United Parcel Service, Wal-Mart and Sears Holding Corp. B. United Parcel Service, Target, and U.S. Army C. Target, Microsoft, and U.S. Army D. Wal-Mart, Ford Motor Corp., and U.S. Army

United Parcel Service, Wal-Mart, and Sears Holding Corp.

All of the following are required elements for the development of an effective CRM initiative EXCEPT: A. Segmenting Customers B. Customer Value Determination C. Utilization of MRP D. Personalizing customer communications

Utilization of MRP

According to the textbook, a performance measurement type for CRM would include: A. Customer Loyalty B. Customer Satisfaction C. Average Sales Revenue Per Customer D. All of the above

All of the above

Which of the following types of warehouses takes a large number of LTL shipments and repackages them in TL or CL quantities to a manufacturer or user- facility located in another area or region? A. Consolidation Warehouse B. Private Warehouse C. Breakbulk Warehouse D. Public Warehouse

Consolidation Warehouse

Which of the following customer service elements can be classified as examples of post- transaction elements? A. Salesperson politeness B. Customer complaint resolution C. Customer service policies D. The company's choice of organizational structure

Customer Complaint Resolution

CRM can allow organizations to identify which customers have stopped purchasing products or services from the organization so that the organization can target those former customers for future promotions and/ or perhaps to investigate why they stopped purchasing in the first place. The CRM attribute is called: A. Customer Profitability Determination B. Customer- Base Retention Initiative C. Customer Defection Analysis D. Customer Clickstream Analysis

Customer Defection Analysis

The objectives of any CRM initiative should be focused on what the company can reasonably achieve.

False

While a well planned and organized CRM plan can be extremely useful in developing effective and efficient marketing programs for retailers, they are not particularly helpful for manufacturing companies like GM since their touches with the customer are few.

False

While high speed trains in the United States are commonly utilized to provide quick delivery of product, countries like Japan and France are struggling to develop a competitive high- speed rail system.

False

While transportation regulation and deregulation both have their supporters, proponents of regulation consider it to be good since it is said to encourage competition and allows the negotiation of prices to dictate market costs.

False

A transportation intermediary used to consolidate large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates is referred to as: A. Consolidation Forwarder B. Load Broker C. Transportation Broker D. Freight Forwarder

Freight Forwarder

Which of the following is similar to a travel agent for cargo since they provide services like documentation completion, special rate handling, and customs clearance, in addition to their consolidating of small shipments to fill entire truckloads? A. Transportation Broker B. Freight Forwarder C. Shippers' Association D. Integrated Logistics Service Provider

Freight Forwarder

Which of the following was NOT mentioned in the textbook as being one of the more popular logistics management software applications? A. Transportation Management Systems B. Freight Management Systems C. Warehouse Management Systems D. Returns Management Systems

Freight Management Systems

The first major transportation regulation in the U.S. was which of the following: A. Interstate Commerce Act B. Motor Carrier Act C. Granger Laws D. Interstate Initiation Act

Granger Laws

Real time location systems (RTLS) are used for the following type of transportation: A. Motor Carriers B. Rail Carriers C. Air Carriers D. Water Carriers

Rail Carriers

Which of the following legislative acts is NOT in support of transportation deregulation? A. Railroad Revitalization and Regulatory Reform Act B. Staggers Rail Act C. FAA Authorization Act D. Reed- Bullwinkle Act

Reed- Bullwinkle Act

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 activity management system B. Sales territory management system C. Lead management system D. Knowledge Management System

Sales Territory Management System

A shipment that originates in Los Angeles and is placed inside a sealed standardized 8' by 8' by 20' container attached to a truck trailer and is moved from Los Angeles to Phoenix where the container is then moved to a railcar for final shipment to Denver where it would then be loaded onto another truck trailer would be considered an intermodal shipment since the container remained sealed throughout the shipment.

True

According to the text, customer relationship management refers to building and maintaining profitable long- term customer relationships.

True

According to the text, global location decisions are made to optimize the performance of the supply chain and be consistent with the firm's competitive strategy.

True

According to the text, the primary objective of an offshore factory is to take advantage of low labor costs.

True

As customers navigate through a website, CRM software can record and analyze the customer's clickstream so website images and ads can be tailored to the needs and desires of that individual customer.

True

Because air transport is so expensive, the best cargo candidates for air travel are those cargo shipments with a high cost to weight ratio.

True

Because integrated supply chains require good suppliers to act as good supply- chain customer partners, CRM programs should include first- tier customer training and education to ensure proper use of purchase products.

True

In general, companies avoid social media sites since they rarely are able to find useful information about customer opinions via blogs and social networking sites.

True

In order to provide more comprehensive delivery service, some freight- only airlines have invested in developing their own motor carrier fleets to provide full door to door service delivery.

True

Private warehouses refer to warehouses that are owned by the firm storing the goods.

True

Regional trade agreements and the World Trade Organization provide a framework for managers in terms of investigating important facility location elements like tariffs, costs, and the free flow of goods and services in different regions of the world.

True

Risk pooling is a strategy that attempts to use fewer warehouses to decrease the required safety stock levels since the negatively correlated market demands reduce the overall demand variance across the markets which the centralized warehouse services.

True

Sales force automation products help salespeople better manage their accounts, their business opportunities, and communications while away from the office.

True

Some of the e- commerce related services that transportation companies offer nowadays to remain competitive include allowing customers to plan itineraries, get freight quotes, and track shipments online.

True

Through the use of permission marketing programs, customers are allowed to select the type of communications companies can make with them. Actually, customers can even choose to be completely eliminated from both email and traditional mailing lists.

True

When a supplier provides a price quote to a buyer for suppliers that includes transportation to the buyer's location this is known as FOB destination pricing, or free on board to the shipment's destination.

True

When trying to gauge a nation's competitiveness, a manager may want to consult one of two primary world competitiveness rankings, the World Competitiveness Yearbook published by IMD and The Global Competitiveness Report prepared by the World Economic Forum.

True

While a company's Internet presence may be desirable for finding information or conducting product transfers, touching products and talking face- to- face with company representatives remains an integral part of the supplier- customer interface.

True